1. Which of the following does not make cooperation more difficult?
Numerous actors.
Existing incentives for states to act unilaterally.
Singular interactions between parties.
Linked issues providing more issues to bargain over.
Imperfect information.
2. A zero coupon bond with a face value of $1,000 is issued with an initial price of $630.66. The bond matures in 20 years. What is the implicit interest, in dollars, for the first year of the bond's life? Use semiannual compounding.
A) $4.09
B)$8.17
C) $7.35
D) $14.71
E) $7.44