Recession unemployment rate were to increase

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Q1. According to Dorn et al. (2008) a 1 percentage point increase in the national unemployment rate would increase enrollments in the Medicaid also SCHIP programs by 1 million individuals also cause the number of uninsured to increase by 1.1 million. In light of these findings, Enlighten the budgetary challenges state governments would face if the economy were to go into a recession also the unemployment rate were to increase.

Q2. Mr. Lim has paid $980.30 for an 8% coupon corporate bond with a face value of $1000 that mature in 5 years. He plans on holding the bond for 1 year. If he wants to earn a (% rate of return on this investment, Illustrate what price must he sell the bond for? Is this realistic?

Reference no: EM1310496

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