Question: Consider a bond (with par value = $1,000) paying a coupon rate of 6% per year semiannually when the market interest rate is only 6%

Consider a bond (with par value = $1,000) paying a coupon rate of 6% per year semiannually when the market interest rate is only 6% per half-year. The bond has three years until maturity.

a. Find the bond's price today and six months from now after the next coupon is paid. (Round your answers to 2 decimal places.)

Current Price =?

Price after 6 months =?

b. What is the total (6-month) rate of return on the bond? (Do not round intermediate calculations. Round your answer to the nearest whole percent.)

Rate of return =?

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LO12.3 Explain how demand is seen by a pure monopoly.

1. Explain how the long run differs from the short run in pure competition. LO11.1

2. Relate opportunity costs to why profits encourage entry into purely competitive industries and how losses encourage exit from purely competitive industries. LO11.2