Answer:
4.5 years
Explanation:
the change in price = $970 - $950 = $20
the change in rate of return = 7.7% - 8.2% = -0.5% or -0.005
to determine the duration of the bond we can use the following formula:
duration = (Δ price / price) / [Δ rate / ( 1 + rate)]
= ($20 / $970) / [-0.005 / ( 1 + 0.077)] = 0.0206 / (-0.0046) = -4.48 years ≈ 4.5 years (remaining time is positive)
Answer:
one of the most longest a guy can go through
Answer: Production and consumption occur simultaneously
Explanation:
Services are intangible quantities that possess value and can be traded, services cannot be stored therefore it most times is produced and consumed at the same time.
Answer:
State orientation
Explanation:
The state orientation is the term which is defined as the inability of the person to regulate the behavior, emotions and thoughts. In short, it means that the individuals or the person unable to modify their state of mind, their uncertainty, dejection, anxiety and confusion.
Under this scenario, Jean who whenever accompany their friends on shopping, she could not able to resist herself from buying the products on sales and spend a lot more than budget, so, it could be concluded that she is state orientated.
Answer:
EAC of Machine A is $6,788.64
EAC of Machine B is $6,094.62
We should purchase Machine B because of its ]lower EAC
Explanation:
Equivalent Annual Cost (EAC) = (Asset price x discount rate)/(1-(1+discount rate)^(-n))), in which n is the number of year for usage of asset.
EAC of Machine A is $6,788.64 = ($15,500x15%)/(1-(1+15%)^(-3))
EAC of Machine B is $6,094.62 = ($17,400x15%)/(1-(1+15%)^(-4))