Answer:
-3.91%.
Explanation:
The Duration Adjustment (% change in bond price) is given by:
= (Duration) * (Change in yield in %)
= -(7.81) x (0.5%)
= -3.91%
The Convexity Adjustment is given by:
= 0.5 * Convexity * (Change in yield, as a fraction)^2
= 0.5 * 99.87 * (0.005)^2
= 0.5 * 99.87 * 0.000025
= 0.001248375
= 0.0012%
Thus, the convexity correction is 0.0012%
Thus, the total change in bond price = -3.91% + 0.0012% = -3.91%.
Answer:
a Interest paid to partners based on the amount of invested capital.
Explanation:
A partnership is formed between two parties that agree to go into a venture for mutual gain. The parties share ownership of the business entity and as such are entitled to profit from their equity holdings.
Interest paid based on invested capital is considered a distribution of profit by the business and not an expense. This is similar to sharing profit to shareholders in a company.
Legitimate expenses include: cost of sales, staff cost, administrative costs, advertising costs, and professional expenses like hiring an accountant.
Answer:
The remaining part of the question is:
Which of the following statements are TRUE?
I New issues of Treasury Bills are generally priced at par
II New issues of Treasury Bonds are generally priced at par, or at a slight discount to par
III New issues of Agency Bonds are generally priced at par, or at a slight discount to par
A. I only
B. III only
C. II and III only
D. I, II, III
Correct Answer:
C. II and III only
Explanation:
It is a fact that virtually all new issues of T-Bills are always sold at a discount to par value. These are original issue discount obligations, with the accrued value of the discount being the interest income earned on these securities.
<em>Treasury Bonds and Agency Bonds are issued at par or in most cases at a very slight discount to par, and make periodic interest payments.</em>
Answer:
The correct answer is option B.
The correct answer is option B.
Explanation:
In a monopolistic market, the markup of each firm is higher than that of a firm in perfect competition. Price is higher as well. The firm in perfect competition is a price taker. The price is determined by the market forces. While, on the other hand, in a monopolistic market the firm is price maker. The price is determined by the interaction of marginal revenue and marginal cost.
Perfect competition has both productive as well as allocative efficiency. So the output produced in perfect competition is higher.
Answer:
The correct answer is d. accounting cycle.
Explanation:
The accounting cycle, also known as the accounting process or registration flow, is the period in which the Company chronologically and reliably records each transaction in its respective Daily Book in order to analyze, prepare and prepare financial information.
The accounting process is made up of all the steps that must be followed since an accounting event occurs until it is introduced into the system and, therefore, is reflected in the financial statements.
The stages of the accounting cycle begin with the identification of the accounting fact, such as with a sale of merchandise. The next step is to generate an accounting document that supports this transaction and allows it to be reflected in quantified accounting in monetary units and with a specific date.
Once this document is generated (delivery note or invoice) the operation is recorded in the Daily Book. At the end of the accounting cycle, which is usually from January to December, the transactions are transferred to the general ledger. After some regularizations (amortizations, reclassifications between short term and long term, calculation of the result, etc.) the accounting is closed to generate the final financial statements.
