Discuss how a quota is different from a price ceiling or a price floor.

Discuss the two assumptions economists make about consumer preferences. Describe the role of prices in market economics. Describe the relationship between the slope of the indifference curve and the consumers preferences? If Bryan values current consumption more than future consumption, he has an? What relationship would you expect between the price of personal computers and the production of personal computers. You are a portfolio manager for a bond fund and you are considering adding high yield bonds as an asset class to your portfolio. One of your colleagues makes the following statements: I. During a bond issuance, a corporate trustee is a third party to the contract who represents the interests of the issuer. II. Investors generally find zero-coupon bonds less attractive in low interest rate environment. III. High yield bonds comprise a very small portion of the overall corporate bond market. IV. Given that high yield bonds are generally unsecured obligations, their covenants are usually stricter than those on loans. V. There are advantages for companies to use a blanket mortgage arrangement to issue first- mortgage bonds. VI. Collateral trust bonds are bonds secured by assets other than real property.(a) (2 points) Assess each of the statements above and expiain your answers. (b) (1 point) Explain why companies wouid prefer to issue the following bonds: (i) Pay-in-kind {PiK} notes (ii) Bonds with incorporated poison puts You just learned about a new issuance of a high yield bond. The issuer, Best Cosmetics, is a first-time issuer and an unfamiliar credit. (c) {1.5 points) Describe two primary types of syndication that Best Cosmetics may use for the bond issuance. A 3-year bond is issued with semi-annuai coupons at a bond equivalent yield {BEY} of 5%. You are given the following yields. Yieid to maturity (HEY) 6.0% Yield to call {BEY} 10% The bond is to be called at the end of 2 years. (d) {1.5 points) Calculate the call price of the bond