Answer:
liquidity premium theory
Explanation:
The liquidity premium theory states that those that invest in bonds do prefer high liquid as well as securities that are short-dated so that it can be sold fast compare to long-dated ones. It states that investors do get compensation for higher default risk when there is change in interest rate.
It should be noted that The liquidity premium theory of the term structure states the following: the interest rate on a long-term bond will equal an average of short-term interest rates expected to occur over the life of the long-term bond plus a term premium that responds to supply and demand conditions for that bond.
B is the most reasonable answer
Answer:
Generally, the higher the potential return of an investment, the higher the risk. There is no guarantee that you will actually get a higher return by accepting more risk. Diversification enables you to reduce the risk of your portfolio without sacrificing potential returns.
Answer:
The correct answer is Domestic Stage/First Stage.
Explanation:
In the first stage of the international development of a company, also known as the national stage, the orientation and operation of an organization is based on the local area, its market capacity is limited to the country of origin. However, its managers seek to transcend borders to publicize their products / services globally, initially intervening in some international market to expand their production volume and achieve economies of scale.
Answer and Explanation:
The journal entries are shown below:
a. Deferred revenue Dr ($3,750 ÷ 3 months) $1,250
To Revenue $1,250
(Being the revenue of three month is recorded)
b. Advertising expense Dr ($2,550 × 10 ÷ 30) $850
To Prepaid advertise $850
(Being the advertising expense is recorded)
c. Salary expense Dr $7,500
To Outsanding salary $7,500
(Being the salary expense is recorded)
d. Interest expense Dr ($65,000 × 6% × 4 months ÷ 12 months) $1,300
To Accrued interest $1,300
(being the interest expense is recorded)
The four months is taken from August 31 to December 31
