Thomas Elliot company's bonds mature in 10 years have par value of 1,000 and make an annual coupon interest payment based on an annual coupon rate of 6.5%. the market requires an interest rate of 5.24% on these bonds. what is the bonds price?

A country described by the Solow growth model has the following Cobb- Douglas production function: Y(K,N)=6K0.6 0.4 Suppose the economy is closed and the government purchase is zero. a) Derive the per-worker production function y = f(k), where k = K b) Suppose the depreciation rate d is 0.1, population growth rate n is 0.1 and the saving rate s is also 0.1. Please find the steady state values of capital labor ratios k*, output per workery and consumption per worker c. c) If the saving rate increases, would there be a higher or lower consumption per worker? d) Find the Golden rule capital labour ratio kc, and the corresponding consumption per worker cc and investment per worker ic. Show your steps. e) Suppose the economy is at the steady state. With the aid of respective Solow Diagram (where capital per worker is on the x-axis), explain how the following events would affect the steady-state values of capital-labor ratio k*, output per workery and consumption per worker c. Explain how the economy would restore back to the steady state and plot the path on how output per worker y, and capital labor ratio k, converge to a new steady state over time. i) Due to a natural disaster, there is a drop in technological level, while all other variables are not affected. ii) Due to a natural disaster, some capitals are destroyed, while all other variables are not affected. Now we introduce the Government purchases G into the Solow growth model. f) Suppose G = aN, where a > 0. Suppose that the government purchases can only be financed by the total lump-sum taxes T and G = T. Consump- tion's consumption is defined as C = (1-s)(Y-T).The production function is Y(K, N) = 6K0.6 No.4. Please find the steady state value of capital labou ratios ki when a = 1. The value of other parameters are the same as b) (that is, depreciation rate d = 0.1, population growth rate n = 0.1 and the saving rate s = 0.1). (You only need to write down the condition for solving ki and use the graph to explain your solution). g) Find the Golden rule capital labor ratio kG, when government purchases G is included (all values of parameters are the same as f)).