Answer:
The given statement is True
<h3>
Explanation:</h3>
- It retained earnings and balance sheet.
- The retained earnings of a corporation are the accumulated net income of the corporation that is retained by the corporation at a particular point in time, such as at the end of the reporting period.
To learn more about the statement, refer
to brainly.com/question/25311149
#SPJ4
A increased demand for services needed or a signifigant overspending over a period of time without more revenue being deposited to even the balance
Answer:
a) ≈ 9.6 years
b) Modified duration is a better measure because Modified duration consider the concept of negative convexity
c) i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
Explanation:
A) Calculate modified duration using the preceding information
modified duration = Macaulay duration / ( 1 + (yield to maturity / 2 ))
= 10 / ( 1 + ( 0.08 / 2 ))
= 9.615 years
B) Modified duration is a better measure because Modified duration consider the concept of negative convexity while Macaulay methods shows the inverse relationship between the duration of the bond and coupon payment .
<u>C) Determine Direction of change in modified duration if </u>
i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
<h3><em>A retal agreement can last for about a year, 12 months.</em></h3>
Guarantees your money is available when you need it
