Answer:
Between 7.8 and 12 Years
Explanation:
The modified duration of a portfolio is defined as a weighted average in the modified duration of an individual bonds. Therefore it will lie between the extreme values of the modified duration of the bonds in portfolio so that the weights are all positive.
In the context, the modified duration lies between 7.8 years and 12 years as the modified duration would always lie between the lowest modified duration and the highest modified duration of any bonds in a portfolio. Therefore the weights are value that will lie between these two years.
Answer:
B) Country A uses fewer resources to produce corn than Country B does.
Explanation:
An absolute advantage is a situation where a country or a company can produce some goods and services using fewer inputs compared to competitors. The company can produce more quantity of using the same amount of inputs than others. A country with an absolute advantage will manufacture a product at a lower cost than other countries or companies.
Absolute advantage enables companies and countries to gain from trade. Through specialization, a company will focus on what it can produce at a lower cost than others, and sell it. Country A has an absolute advantage if it can produce corn at a lower cost than country B.
Answer:
The credit on December 31 is to credit Treasury Stock with $15,000.
Explanation:
There are two methods for accounting for Treasury Stock. The first is the par value method. With this method, the Treasury Stock account is debited or credited with the par value for each transaction, while the difference in par value is taken to the Additional Paid-in Capital account.
Using the cost method, the Treasury Stock account is debited and credited with the value of each transaction and the Additional Paid-in Capital account is not affected.
This implies that under the cost method, the purchase and resale of treasury stock is recorded by debiting and crediting the treasury stock account by the actual cost of purchase and actual value of sale.
The correct answer is B. Reduced government spending.
If expansionary taxation policies are being left while they are unchecked they will result to reduced government spending.
Expansionary policy is termed as a fiscal policy which increases expenditure for government and decreased taxes.
If a tax is decreased it means that a lot of disposal income is being spend. When the disposal is high, then the consumption will increase and also the GDP increases.
Answer:
d.$133,600
Explanation:
Credit sales in January= $120,000 x 80% = $96,000
Credit sales in February = $140,000 x 80% = $112,000
Collections from January credit sales ($96,000 x 40%)$38,400
Add: Collections from March credit sales ($112,000 x 60%) $67,200
Add: Cash sales in March ($140,000 x 20%) $28,000
Total collections in February $133,600