Q. Illustrate what is the "present macroeconomic situation" (e.g. worrying about inflation also/or recession) in the U.S.? [2] Illustrate what should the U.S. Congress also the Federal Reserve do about it?

Q. The bonds of the Lange Corporations are perpetuities with a 10 percent (%) coupon. Bonds of this type presently yield 8 percent (%) also their par value is $1,000.

A) Illustrate what is the price of the Lange bonds?

B) Assume interest rate levels rise to the point where such bonds now yield 12 percent (%). Illustrate what would be the price of the Lange bonds?

C) At illustrate what price would the Lange bonds sell if the yield on them was 10 percent (%)?

D) How would your answer to parts (A), (B) also (C) change if the bonds were not perpetuities but rather had a maturity of 20 yrs?

Illustrate what is this?
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