Question1.The following questions refer to this regression equation, (standard errors in parentheses.) Q = 8,400 - 10 P + 5 A + 4 Px + 0.05 I, (1,732) (2.29) (1.36) (1.75) 0.15)

R2 = 0.65

N = 120

F = 35.25

Standard error of estimate = 34.3

Q = Quantity demanded

P = Price = 1,000

A = Advertising expenditures, in thousands = 40

PX = price of competitor's good = 800

I = average monthly income = 4,000

1) Calculate the elasticity for each variable and briefly comment on what information this gives you in each case.

2) Calculate t-statistics for each variable and explain what this tells you.

s we can conclude that the other variables do have an impact on the quantity demanded of this good.

3) How is the R2 value calculated, and what information does this give you?Question2.

You purchased a 5-year annual-interest coupon bond 1 year ago. Its coupon interest rate was 6%, and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 3%, what would your annual total rate of return on holding the bond for that year have been approximately? You purchased a 5-year annual-interest coupon bond 1 year ago. Its coupon interest rate was 6%, and its par value was $1,000. At the time you purchased the bond, the yield to maturity was 4%. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 3%, what would your annual total rate of return on holding the bond for that year have been approximately?

Question3.

A corporate bond has a 10 year maturity and pays interest semiannually. The quoted coupon rate is 6% and the bond is priced at par. The bond is callable in 3 years at 110% of par. What is the bond's yield to call? A corporate bond has a 10 year maturity and pays interest semiannually. The quoted coupon rate is 6% and the bond is priced at par. The bond is callable in 3 years at 110% of par. What is the bond's yield to call?