Sam buys an eight-year, 5000 par bond with an annual coupon rate of 5%, paid annually. The bond sells for 5000. Let 1d be the Macaulay duration just before the first coupon is paid. Let 2d be the Macaulay duration just after the first coupon is paid. Calculate d1/ d2 a. 0.91
b. 0.93
c. 0.95
d. 0.97
e. 1

In the market for widgets, the supply curve is the typical upward-sloping straight line, and the demand curve is the typical downward-sloping straight line. the equilibrium quantity in the market for widgets is 250 per month when there is no tax. then a tax of $6 per widget is imposed. as a result, the government is able to raise $750 per month in tax revenue. we can conclude that the after-tax quantity of widgets has fallen by a. 25 per month. b. 50 per month. c. 75 per month. d. 100 per month.