In Cognitive theory,
1 answer:
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Answer:
B. The purchase of a variable annuity contract
Explanation:
The variable annuity contract is the contract in which there is no limit in terms of dollars for contributions and the income i.e. earned on the investment should be considered as a tax deferred
Since the invested amount is $1,000 per month so for yearly it is $12,000.
Also the IRA account permits $5,500 contribution for the year 2018 so this not meet the requirement of $12,000
Also the large returns bonds are speculative and thus not considered for the income used in the retirement
Hence, the option is correct
Answer:
debit interest expense of $16,634 , debit note payable $24,126 : Credit cash $40,760
Explanation:
Please attachment.
Answer: b. For a bond of any maturity, a 1.0 percentage point increase in the market interest rate (rd) causes a larger dollar capital loss than the capital gain stemming from a 1.0 percentage point decrease in the interest rate
Explanation:
This is very true. If market rates reduce by 1.0%, there is a larger drop in the price of a bond than the amount a bond gains in price if interest rates increase by that same 1.0%.
This is why the graph that relates bond prices to yield is concave and I attached a graph as proof.
Notice how the fall in price is greater when interest rate increases.
