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### tutorial4

Course: ECON 2102, Spring 2012
School: UNSW
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Word Count: 338

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4WEEK TUTORIAL 4 ECON2102 Macroeconomics 2 August 2008 1. Consider a discount bond, such as U.S. Treasury Bill. This type of asset has no explicit interest payments (called coupons) but pays a principal of, say, \$1000 at a xed date in the future. A Bill with one-year maturity pays o one year from the issue date, and similarly for three-month or six-month Bills. Let P B be the price of a discount bond with...

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4WEEK TUTORIAL 4 ECON2102 Macroeconomics 2 August 2008 1. Consider a discount bond, such as U.S. Treasury Bill. This type of asset has no explicit interest payments (called coupons) but pays a principal of, say, \$1000 at a xed date in the future. A Bill with one-year maturity pays o one year from the issue date, and similarly for three-month or six-month Bills. Let P B be the price of a discount bond with one-year maturity and principal of \$1000. a) Is P B greater or less than \$1000? b) What is the one-year interest rate on these discount bonds? c) If P B rises, what happens to the interest rate on these bonds? d) Suppose that, instead of paying \$1000 in one year, the bond pays \$1000 in two years. What is the interest rate per year in this two-year discount bond? 2. Suppose that an economy has discount bonds with one- and two-year maturities. Let i1 be t an interest rate on a one-year bond issued at the start of t; year and i1+1 be an interest rate t on a one-year bond issued at the start of year t + 1: Let i2 be the interest rate (per year) on a t two-year bond issued at the start of year t. We can think of i1 as the current short-term interest t rate and i2 as the current long-term interest rate. t a) Assume that at the start of year t everybody knows not only i1 and i2 ; but also the next t t years one year rate, i1+1 : What must be the relationship between i1 ; i2 ; and i1+1 : Explain tt t t the answer by considering the incentives of lenders and borrowers. b) If i1+1 > i1 , what is the relation between i2 , the long-term interest rate, and i1 , the shortt t t t term interest rate? The answer is an important result about the term structure of interest rates. c) How would the results change if we assumed, more realistically, that there was uncertainty in year t about the future one-year interest rate, i1+1 ? t 1
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UNSW - ECON - 2102
TUTORIAL 4WEEK 4ECON2102 Macroeconomics 2August 2008solutions1. Consider a discount bond, such as U.S. Treasury Bill. This type of asset has no explicitinterest payments (called coupons) but pays a principal of, say, \$1000 at a xed date in thefuture
UNSW - ECON - 2102
Name: _ Class: _ Date: _ID: AECON 2102 Macroeconomics 2 - Tutorial 5: Markets, Prices, Supply, and DemandTrue/FalseIndicate whether the statement is true or false._1. Bond holdings and interest income are zero for the whole economy._2. In the Barr
UNSW - ECON - 2102
ID: AECON 2102 Macroeconomics 2 - Tutorial 5: Markets, Prices, Supply, and DemandAnswer SectionTRUE/FALSE1. T2. FMULTIPLE CHOICE3.4.5.6.7.8.9.10.11.12.13.14.15.16.17.18.19.20.DBCBBDCACDDDDACCCBSHORT ANSWER21. Pr
UNSW - ECON - 2102
TUTORIAL 6WEEK 6ECON2102 Macroeconomics 2September 20081. Derive the two-period budget constraint given below and interpret it.C1 +C2(w=P )2 L= (1 + i0 ) (B0 =P + K0 ) + (w=P )1 L +(1 + i1 )(1 + i1 )B2 =P + K2(1 + i1 )2. Discuss the eects on t
UNSW - ECON - 2102
TUTORIAL 6WEEK 6ECON2102 Macroeconomics 2September 2008solutions1. Derive the two-period budget constraint given below and interpret it.C1 +C2(w=P )2 L= (1 + i0 ) (B0 =P + K0 ) + (w=P )1 L +(1 + i1 )(1 + i1 )B2 =P + K2(1 + i1 )Answer: The two
UNSW - ECON - 2102
TUTORIAL 8 WEEK 8ECON2102 Macroeconomics 2September 20081. Discuss the eects on this years quantity of labor supplied, Ls , from the following changes:1a) an increase in the interest rate, i1 .b) a permanent increase in the real wage rate,wP.c) a
UNSW - ECON - 2102
TUTORIAL 8 WEEK 8ECON2102 Macroeconomics 2September 20081. Discuss the eects on this years quantity of labor supplied, Ls , from the following changes:1a) an increase in the interest rate, i1 .b) a permanent increase in the real wage rate,wP.c) a
UNSW - ECON - 2102
TUTORIAL 9 WEEK 9ECON2102 Macroeconomics 2September 20081. Capital Utilization (Numerical Question). Refer to Figure 9.3. Now supposeRthat the real rental rate P = 1. Depreciation is a function of the capital utilization rate [0, 1] and its function
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Review Questions Week 10Multiple ChoiceIdentify the choice that best completes the statement or answers the question. Make sure you write your choice inCAPITAL LETTERS._________1. If the labor force is 100 million, there are 95 million people
UNSW - ECON - 2102
Review Questions Week 10Multiple ChoiceIdentify the choice that best completes the statement or answers the question. Make sure you write your choice inCAPITAL LETTERS._________1. If the labor force is 100 million, there are 95 million people
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Chapter 9 Mechanisms/ReactionsAlcohols1Williamson Ether Synthesis In theory, unsymmetrical ethers can be synthesized in twodifferent ways. In practice, one path is usually preferred. The path involving alkoxide attack on a less hindered alkylhalid
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Saint Louis - CHEM - 163/164
Saint Louis - CHEM - 163/164
Saint Louis - CHEM - 163/164
Page 1 of 9CH A1 6 4Spring 2008EXAM IF o rm ANAME (PRINT)_NAME (SIGNATURE)_STUDENT BANNER ID _LAB TA &amp; TIME OR SECTION NO. _All answers should be written on the two grading sheets thataccompany this exam. They are what will be graded. Onegradin
Saint Louis - CHEM - 163/164
Saint Louis - CHEM - 163/164
Page 1CH A164Spring 2008PRACTICE EXAM INAME (PRINT)_NAME (SIGNATURE)_STUDENT BANNER ID _CLASS (CHECK ONE)10am!11am!This is the blank practice exam. The solution keyto this exam will be posted separately. You shouldnot just study this exam. J
Saint Louis - CHEM - 163/164
Saint Louis - CHEM - 163/164
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Saint Louis - CHEM - 163/164
Saint Louis - CHEM - 163/164
CHEM 164Spring 2010Exam 1, Form AI. MULTIPLE CHOICE. GIVE ONLY ONE ANSWER PER QUESTION. MULTIPLEANSWERS WILL BE COUNTED WRONG. (3 pts. each)Chapter 161. Consider the following reaction 8A(g) + 5B(g) ! 8C(g) + 6D(g)If ![C]/!t = 4.0 mol L!1 s!1, what
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Saint Louis - CHEM - 163/164
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Saint Louis - CHEM - 163/164
Carleton University - MATH - 2107
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Carleton University - MATH - 2107
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Carleton University - MATH - 2107
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Carleton University - MATH - 2107
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Carleton University - MATH - 2107
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Answers to Exercise Set IV.3.Drills1. (a) U =011.02. (a) We have N =10(b) U =acba0.1(c) U =(d) U =1211.1 1ac. The identity N N = N N becomesbaand N =aa + bbca + ab10.0 a/|a|ac + baaa + cc ab + ca=.cc + aaba + ac bb
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Carleton University - MATH - 2008
Carleton University - MATH - 2008
Carleton University - MATH - 2008
Carleton University - MATH - 2008
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CHEM 3100Assignment #2Due Friday, February 11, 2011 by 3 PMSolutions will be posted at 4 PM so you can study for the test on February 15,i.e. no late assignments can be accepted10 marks for each question1.The mean activity coefficients for aqueous
Prince Sultan University - CS - 311
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CS 311Design and Algorithms AnalysisCS 311 Algorithm Design and Analysis Dr. Mohamed TounsiPSU1Problems and AlgorithmsAbstractly, a problem is just a functionp : Problem instances -&gt; SolutionsExample: Sorting a list of integersProblem instances =
Prince Sultan University - CS - 211
FdrgoitrdoghitroihrtRhtoigheroighsodgihsdoighsGihohsdgihdohrdeGhiedGihsndgIpshgoihdergiihsdGphsgohergoiuehopisZghSpgihdsPrghswPgihspOighdpiGhzsAgapRghepoGrhwerpGiherpiGhezarHEPgirhezahareht
City College of San Francisco - BIOLOGY - 101B
City College of San Francisco - BIOLOGY - 101B
Review #1Population: group of individuals of same species in same area and interbreed, producingfertile offspringMicroevolution: small-scale evolution, change in allele frequency in population overgenerationsMacroevolution: broad pattern of evolution
City College of San Francisco - BIOLOGY - 101B
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City College of San Francisco - BIOLOGY - 101B
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City College of San Francisco - BIOLOGY - 101B
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City College of San Francisco - BIOLOGY - 101B
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City College of San Francisco - BIOLOGY - 101B
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City College of San Francisco - CHEMISTRY - 101B
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City College of San Francisco - CHEMISTRY - 101B
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