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7. A brokerage firm is considering a one year Zero Coupon with a YTM of 7% and the YTM on 2 year Zeros is 8%.

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7. A brokerage firm is considering a one year Zero Coupon with a YTM of 7% and the YTM on 2 year Zeros is 8%. The Central Bank plans to issue an annual 9% coupon bond, with a 2 year maturity and par value of $1,000 CUsing the Expectations Theory of Yield Curves, what is the market expectation of the price that the bond will sell for next year? (3 Points) Enter your answer 8. Two firms, Adderley's and Bethel's, both produce sand dollar souvenirs. The price of souvenirs is $1 each. Adderley's has total fixed costs of $500,000 and variable costs of 500 per souvenir. Bethell's has total fixed costs of $240,000 and variable costs of 75 per souvenir. The corporate tax rate is 40%. If the economy is strong, each firm will sell 1,200,000 souvenirs. If the economy enters a recession, each firm will sell 1,100,000 souvenirs. If the economy enters a recession, the after-tax profit of Adderley's will be: (3 Points) Enter your answer Mdada Robot dom The Om

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