Answer:
D)reducing its need to be self-sufficient,
Explanation:
Specialisation by a country's economy means that it produces only the specialised goods & even export it, import the other goods.
It decreases opportunity costs, decreases cost of voluntary exchanges. Higher level of specialisation implies there is increased labor force division.
However, it reduces need of country to be self sufficient. As, it can gainfully trade its specialised goods for other goods (in which other economy specialises).
Answer:
A
Explanation:
After adjusting the balances as per the bank and as per the books, the adjusted amounts should be the same. If they are still not equal, you will have to repeat the process of reconciliation again.
Once the balances are equal,<em> businesses need to prepare journal entries </em>for the adjustments to the balance per books.
Answer:
a) ≈ 9.6 years
b) Modified duration is a better measure because Modified duration consider the concept of negative convexity
c) i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
Explanation:
A) Calculate modified duration using the preceding information
modified duration = Macaulay duration / ( 1 + (yield to maturity / 2 ))
= 10 / ( 1 + ( 0.08 / 2 ))
= 9.615 years
B) Modified duration is a better measure because Modified duration consider the concept of negative convexity while Macaulay methods shows the inverse relationship between the duration of the bond and coupon payment .
<u>C) Determine Direction of change in modified duration if </u>
i) coupon of bond = 4%
Modified duration will increase since the coupon rate of payment decreased
ii) Maturity of bond = 7
Modified duration will decline as Maturity period has declined to 7 years
Answer:
Detailed solution is given below in attached diagram:
