ECON 0110 Midterm: Midterm 1 Exam Preparation
Document Summary
Midterm 1 exam preparation: a company has a bond for sale on 1/1/2015. The bond will pay 4. 0% interest on 12/31/2015; 12/31/2016, and 12/31/2017. The par value also will be returned on 12/31/2017. Assume you could invest money at 6% annual interest as of 11-2015. What is the present value of the bond as of 1/1/2015: less than , to . 99, to less than . 99, ,000 to less than ,100, ,100 or more, use the following assumptions: A household contains a husband, a wife, and two dependent children. Calculate the household"s tax amount: less than 12,000, 12,000 to 13,999, 14,000 to 15,999, 16,000 to 17,999, 18,000 or higher, suppose you own shares of stock in a corporation. Assume a union worker earned ,000 during 2010. Assume her income increased each year at exactly the same rate as the consumer price index. Thus, for example, during 2011, her income increased by the inflation rate between 2010 and 2011.
