We see the following yield curve for discount, or zero-coupon, bonds.

maturity yield to maturity
1 year 6%
2 years 7%
3 years 8%

(a) if the fair price for a four-year annuity paying $100 per year is $334.57, what is the yield to maturity on a four-year zero-coupon bond?
(b) suppose that you wish to lock in a loan in year 2 to be repaid in year 3 (cash received in year 2 and interest plus principal returned in year 3). the amount of the loan is $20 million. what pattern of discount bond holdings could you use to construct this loan now?

answer; (a) calling people who have not shown interest in the product and asking them to buy it;

1   all nations face the problem of scarcity because there are limited resources and unlimited wants. nations do not have enough factors of production to produce everything that their population wants. entrepreneurial resources initiate businesses to make new goods and services; labor resources produce goods and services.

2 there are four factors of production: natural resources, labor resources, capital resources, and entrepreneurial resources. natural resources are raw materials from nature that are used to produce goods. trees, water, and grains are natural resources. some natural resources, such as wheat and cattle, are renewable

3 wants

things that you do not need to have in order to survive, but would like to have

needs

things that you must have in order to survive

goods

physical products

services

tasks that a business perform for customers

resources

items that people can use to make or obtain what they need or want

determine

to settle or decide by choice of alternatives or possiblities

4 i really dont know

an important city to the south and the region's capital is c. kiev