You go to a car dealership to purchase a car. One of the cars catches...
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You go to a car dealership to purchase a car. One of the cars catches your eye. You estimate that this car is worth anywhere between $8,000 and $10,000. If you believe that the dealer knows as much about the car as you do, how much should you be willing to pay for it? Assume that car values are symmetrically distributed, and that you only care about the expected value of the car you will buy. O A Impossible to answer OB. $9,000 OC $8,000 OD $10,000 Suppose Anastasia has a consol bond (a perpetuity bond) that pays an annual coupon of $200 per year and yields on similar types of investments are 10%. If Anastasia expects competing yields will increase to 12%, what is her expected capital gain (positive for a gain and negative for a loss)? ho O A $1,666.67 O B. $1,066.67 OC. $333.33 O D. $2,884.47
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