Because of a change in the required rate of return from 11 percent to 13 percent, the bond price of a zero-coupon bond will fall from $1,00 . to $860 . Thus, the bond price elasticity for this bond is
a. 0.77
b. -0.77.
c. -0.90.
d. -1.06.
e. none of the above.
b
Business
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According to the Iceberg principle, given the submerged (hidden) nature of a large part of a problem, it is not possible to include those portions of the problem in the problem definition and research design.
a. true b. false
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What are the basic steps of the normalization process?
What will be an ideal response?
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