You currently own a thirty year treasury bond

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MICROECONOMICS #1

Topic: Real-World Monopolies

Describe an example of a real-world industry or market that would be considered by economists to be a natural monopoly.

What characteristics of the industry make it a monopoly?
What is the impact of the monopoly power on its customers?
Why might government want to regulate natural monopolies?
How might such regulation be structured?

MICROECONOMICS #2

Topic: Role of Advertising

Assume that you are going to start a small business of your own. Further, imagine that you are able to adequately differentiate your product, or service so that you can establish your business as a monopolistically competitive firm.

Describe the business and its likely main competitors.
How would you structure your advertising and customer service to differentiate your product/service?
How easy would it be for new competitors to enter your market and erode your customer base or selling price?
What would be your prognosis for the long term profitability of such a business?
What could you do to protect that long term profit stream?

FINANCE #1

Bonds

There is an inverse relationship between bond prices and yields. This inverse relationship will be demonstrated by calculating bond prices to show that interest rates move inversely: if yields rise, then bond prices fall. Bonds will be sold either at a premium or a discount. With this in mind respond to the following question.

You currently own a 30 year Treasury Bond at 4% interest, paid semiannually. The market interest rates for like securities rose to 5%. Would your bond sell for a premium or a discount? Why? What would the market value of your bond be? Prove your answer by showing your work.

FINANCE #2

Stocks

There are two primary means to earn income as a stockholder. The first method is dividend income and the second method is earnings from capital gains. With respect to the investor seeking dividend income, when the investor buys a stock from a corporation with a primary focus to earn dividend income they will typically expect a higher dividend on common stock versus preferred stock. Discuss the dividend payment requirements of a common stock versus preferred stock, in terms of which type of stock has a primary claim on dividend distributions. Explain why the common stock investor demands a higher dividend rate.

MARKETING #1

Discussion: Pricing-One of the 4 P's

Being up to date with current events is an important part of becoming a business professional. In marketing, it is part of an important responsibility to continuously scan the external environment for opportunities and threats. Execute the following steps to successfully complete this Discussion on the pricing component of the marketing mix:

Step 1: Choose a current events article on pricing from the KU Online Library or from:

Learn the 4 P's: https://www.learnthe4ps.com/category/price/

Step 2: Cover the following topics in your Discussion answer in essay format:

Discuss the key purpose of the article in relation to the pricing component of the Marketing Mix.

Identify two pricing concepts that you learned from reading this article.

From the perspective of a professional, what impact does the information on pricing in this article have on the marketplace?

From the perspective of a consumer, what impact might the pricing concepts in the article have on the buying decisions of consumers?

How might this information on pricing affect you personally?

Directions for the Discussion

To obtain full credit for this assignment, you must answer the available question as thoroughly as possible. Your answer should be thoughtful and composed using complete sentences. Please follow the Discussion Board guidelines as provided in your Syllabus.

Be sure to comment on at least two of your classmates' posts. Your comments should be substantial and well-reasoned. Just agreeing with comments of another student does not fulfill this requirement.

Reference no: EM131276091

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