Econ 203 Quiz 1
Submit them in groups.
1. David is considering his purchase of good X and good Y with P x = $10 and Py =
1/2
1/2
$20. His utility function is U(X,Y) = X
+ Y . His income is I = $120. Find
Davids optimal basket. Graphically explain your ans
Appendix 1
HONG KONG SHUE YAN UNIVERSITY
PLAGIARISM & ACADEMIC MISCONDUCT POLICY
OBJECT
The obj ect of the Plagiarism and Academic Misconduct Policy is to promote an educational
environment where academic honesty and fairness are valued as promoting perso
548 PA R T I V Fixed-Income Securities
Convexity allows us to improve the duration approximation for bond price C
Accounting for convexity, Equation 16.3 can be modified as follow
A: : D*Ay + 1/5 X Convexity >< (r5302
P (16.5)
The first term on the righth
CHAPTER 16
Managing Bond Portfolios
16-1
16.1 Bond Pricing Relationships
Bond prices and yields are inversely related.
An increase in a bonds yield to maturity
results in a smaller price decline than the
gain associated with a decrease in yield of
equa
Chapter 4
Individual and
Market Demand
Chapter Outline
The Effects of Changes in the Price
The Effects of Changes in Income
The Income and Substitution Effects of a Price Change
Consumer Responsiveness to Changes in Price
Market Demand: Aggregating Indivi
Econ 203 Quiz 2
Submit them in groups.
1. Two firms (Firm 1 and Firm 2) selling a homogenous good face the market demand
curve P = 400 2Q, where Q = Q1 + Q2, P = the market price, Q = total output from
Firm 1 (Q1) and Firm 2 (Q2). The cost functions are g
CHAPTER 14
Bond Prices and Yields
14-1
14.1 Bond Characteristics
Bonds are debt. Issuers are borrowers and
holders are creditors.
The indenture is the contract between the
issuer and the bondholder.
The indenture gives the coupon rate, maturity
date,