It is a myth that bonds are always less risky than stocks. bond investors can really lose their shirts (go broke) in a rising interest rate environment. suppose you buy a 12-year bond with a face value of $10,000 and a coupon rate of 2%. interest rates unexpectedly double over the next 12 months. you become discouraged and cash out. how much will you be able to raise by selling the bond?

Herman is covered by a cafeteria plan by his employer. his adjusted gross income (agi) is $100,000. he paid unreimbursed medical premiums in the amount of $10,500 and he itemizes deductions. what amount will herman be able to deduct for his medical insurance premium expenses?

Afactory owner wants his workers to produce as many widgets as they can so he pays his workers based on how many widgets they produce. however, in order to make sure that the workers do not rush and produce a large number of poorly made widgets, he checks the widgets at random at various stages of their manufacture. if a defect is found in a widget, the pay of the entire section of the factory responsible for that defect is docked. how is this factory owner seeking to solve the agency conflict problem in this case?

Suppose a country's productivity last year was 84. if this country's productivity growth rate of 5 percent is to be maintained, this means that this year's productivity will have to be: