A $25,000 Face Value STRIPS Is Quoted at 93

question 28

Multiple Choice

A $25,000 face value STRIPS is quoted at 93.400. What is the dollar price?

• A) $23,067.50
• B) $23,210.94
• C) $23,215.00
• D) $23,277.78
• E) $23,350.00

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Definitions:

Marginal Product

The increase in output that arises from an additional unit of input, holding all other inputs constant.

Power Cords

Electrical cables used to connect appliances and electronic devices to the main electricity supply in order to power them.

Fifth Worker

An example used in economics to illustrate the principle of diminishing returns, where the addition of a fifth worker may lead to a lesser increment in output than the fourth.

Marginal Product

The additional output that can be produced by adding one more unit of a specific input, keeping all others constant.