What must the drivers have the drivers believed

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Reference no: EM1320214

Q1. Dr. Schultz is considering purchasing a bond having a face value of $2,500 also a bond rate of 10% payable semiannually. The bond has a remaining life of 8 years. Elucidate how much should she pay for the bond to facilitate earn a return on investment of 14% compounded semiannually? Assume the bond will be redeemed for face value.

Q2. in august 1990, East German taxicabs drivers were on strike demanding lower cab fares. Illustrate what must the drivers have the drivers believed about the price elasticity of demand for taxi rides?

Reference no: EM1320214

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