Calculate the Duration of a $1,000 Face Value Bond with Annual

question 23

Multiple Choice

Calculate the duration of a $1,000 face value bond with annual coupon payments,a coupon rate of 7 percent,a maturity of 4 years,and a yield to maturity of 8.2 percent.

• A)3.49 years
• B)3.62 years
• C)3.69 years
• D)3.81 years
• E)3.74 years

Describe the effects of a price floor and a price ceiling on market equilibrium.

Identify the conditions that lead to a surplus or shortage resulting from price controls.

Explain the role of government policies in setting minimum wages and price controls in markets.

Describe how price controls, such as price ceilings and floors, can lead to inefficiencies in the market.