31.Assume that the price of a $1,000 zero coupon bond with five years to maturity is $567 were the required rate of return is 12 percent. If the required rate of return suddenly changes to 15 percent, what is the price elasticity of the bond?

a. C.494

b. +.980

c. +.494

d. A.980

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30.Recently, the yen price of Japanese steel has increased by 10% (to 11,000 yen) relative to the dollar price of American steel (unchanged at $100). By what amount must the dollar increase or decrease in value for the law of one price to hold true?

a. 11,100 yen

b. 10,900 yen

c. 110 yen

d. 1,100 yen