An investor is considering a 20-unit apartment building that is 10 years old and in excellent condition.
The purchase price is $700,000 with the land being valued at $50,000. The investor plans to sell the property after 4 years and anticipates paying selling costs of 6% of the sales price. The value of the property is expected to increase 2.5% annually over the 4-year holding period. The property is depreciated using the straight-line method over 27.5 years. The investor is in the 28% marginal income tax bracket and faces a 20% capital gains tax rate. The taxable gain/loss and capital gains tax due on the sale of the property at the end of year 4 would be closest to:

In order to stimulate aggregate demand, the government is considering reducing taxes. Keyesian economists would suggest that the government should:

The quantity demanded of a product goes from 100 to 110 units when the price goes from $50 to $25.
What is the price elasticity?

The economy is projected to emerge from a recession soon. The spread between AAA and CAA rated bond can be expected to

A coupon bond with duration of 4.75 has an initial price of par value. A 50 basis point decrease in required return would cause the price of $2,000,000 par value of this bond to: