1) Circle the best answer: a) True or False: One way financial operative like John Blunt could make money was to personally purchase assets just before the British government would purchase them either directly or indirectly, such as Irish land or Army Debentures (=bonds) b) True or False: John Blunt was faithful to his business partners, so they would trust him and both could benefit. c) True or False: Robert Walpole was a Whig politician who lost money by buying shares in the South Sea Company when price was high, and selling when price was low. d) True or False: Although stock price of The South Sea Company did rise and then fall, its monopoly in British trade with South and Central America turned out to be very profitable. e) True or False: John Blunt and Robert Harley promoted war between Spain and the UK so they could earn profits selling the British military weapons. 2) If the price of the South Sea Company stock increases from 100 /share to 1000 /share a) the price has increased by a factor of ______ b) how large is the percent increase? 3) If the price of the South Sea Company stock decreases from 1000 /share to 200 /share a) the price has decreased by a factor of ______ b) how large is the percent decrease? 4) A government bond maturing in 4 years pays three $100 Coupons at the end of each of the next four years has Face Value = $1000 received at the end of four years and a relevant discount rate = 5%. At the start of the first period what are: a) the price of the bond? b) present value of the four coupon payments of $100 each? c) present value of the one payment of the "face" or "par" value of $1000 at the end of four years? 5) Would an "American Political Liberal" or a "Classical Liberal Libertarian" be more likely to favor liberalizing international trade?