Answer:
Missing question "<em>If the interest rates increase by 50 basis points, What will be the percent change in price for the bond? Why?
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Modified Duration = Macaulay Duration / (1 + YTM)
Modified Duration = 7.2 / (1 + 10%)
Modified Duration = 7.2 / (1 + 10%)
Modified Duration = 6.55
% Change in Bond Price = - Modified Duration x Change in int rates
% Change in Bond Price = - 6.55 x 0.5%
% Change in Bond Price = - 3.27%
Thus, the Interest rates and bond prices are inversely related. Hence, increase in interest rates would lead to decline in bond prices.
Answer:
The adjusted cash balance should be: $17,600
Explanation:
Up date the Cash Balance in the cash book as follows :
<em>Note - Adjust on the items that exist on the bank statement but not recorded in the cash column of the cash book.</em>
Debit :
Balance as at May 31 $17,025
NSF check $600
Totals $17,625
Credit:
Bank service fees $25
Updated Cash Balance $17,600
Totals $17,625
Answer: $2610
Explanation:
Money supply simply means the total amount of money that is in a particular economy at a point in time. Based on the information given, the M1 money supply will be:l the addition of the currency and coin held by the public, the checking account balance and the traveler's checks. This will be:
= $800 + $1800 + $10
= $2610
Therefore, the M1 money supply is $2610.
