The bond that has a face value of $1,000 has a duration of 10 years.
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What is a bond?</h3>
A bond is a type of security in the financial world where the issuer (debtor) owes the holder (creditor) a debt and is required, depending on the terms, to repay the bond's principal (i.e., the amount borrowed) at the bond's maturity date as well as interest (referred to as the coupon) over a predetermined period of time. The interest is typically due at regular intervals, such as every six months, once a year, and less frequently at other times. To finance long-term investments or, in the case of government bonds, to finance immediate expenses, the borrower can obtain external funds through the sale of bonds. Both bonds and stocks are considered to be forms of security, but the main distinction between the two is that (capital) stockholders have an equity stake in a company, whereas bondholders have a creditor stake.
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Answer:
(B) $205,000
Explanation:
Retained earnings at December 31, were $145.000, with the Net Income for 2018 of $90.000 the total amount of Retained earnings up to $235.000, but as the company has paid dividends for $30.000, it means a cash out of $30.000.
So the new balance in the Retained Earnings Account it's $205.000
The primary concerns when first starting your business are: financing and planning
When consumers and businesses have greater confidence that they will be able to repay in the future, <u>the quantity demanded of financial capital at any given interest rate will shift to the right.</u>
