1. Suppose the price of gold is $850 per ounce.

a. If the pound sterling price of gold is 560 per ounce, what should you expect the pound price of a dollar to be?

b. If it actually only costs 0.50 to purchase a dollar, could you make a profit here? If so, how? And if not, why not? (2 pts)

c. How will the bond be affected Increase, Decrease, or stay the same

The bond is exempt from federal income taxes. ________________