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Free_Kalibri [48]
3 years ago
11

Convexity implies that duration predictions: I. Underestimate the percentage increase in bond price when the yield falls. II. Un

derestimate the percentage decrease in bond price when the yield rises. III. Overestimate the percentage increase in bond price when the yield falls. IV. Overestimate the percentage decrease in bond price when the yield rises. Group of answer choices II and IV only II and III only I and III only I and IV only
Business
1 answer:
mestny [16]3 years ago
7 0

Answer:

The correct answer is I. Underestimate the percentage increase in bond price when the yield falls; IV. Overestimate the percentage decrease in bond price when the yield rises.

Explanation:

Convexity is the relationship between price and profitability of a bond. The duration has to do with the period in which the bonds mature, where some variables such as redemptions are taken into account in order to finally be able to measure the risk of changes in interest rates.

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Pittman Framing's cost formula for its supplies cost is $1,110 per month plus $11 per frame. For the month of November, the comp
Bumek [7]

Answer:

See below

Explanation:

Spending variance for supplies = Standard cost - Actual cost

Standard cost formulae = $1,110 per month + $11 per frame

Standard cost for actual output = $1,110 + ($11 × 611)

= $1,110 + $6,721

= $7,831

But actual cost = $8,250

Therefore,

Spending variance would be

= $7,831 - $8,250

= $419 unfavourable

The spending variance for supplies cost in November is closest to $419 unfavourable

4 0
3 years ago
The return on shareholders' equity for... Income statement: 2018 Sales $ 2,500,000 Cost of goods sold 1,300,000 Net income 200,0
soldi70 [24.7K]

Answer:

The return on shareholders' equity for 2018 is  22.2%

Explanation:

Return on Equity measures the Return earned by the owners investments in the company.

Return on Equity =  Net Income / Total Shareholders Funds × 100

                            =  200,000 / 900,000 ×100

                            =  22.2%

3 0
3 years ago
Prepare general journal entries to record the following transactions for the Harris
e-lub [12.9K]

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                                      Provision for bad debt expense    800$

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                        Provision for bad debt   75$

                                                          Debter   75$

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                                                           Bad debt recovery income 45$

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                                Provision for bad debt  25$

                                                                Bad debt recovery income  25$

7 0
3 years ago
Read 2 more answers
The value of an investment increases by 0.05 % each day. by what percent does it increase in a year?
iVinArrow [24]
18.25%

0.05% x 365 (days in a year) 

5 0
3 years ago
The number of years a person that age is expected to have left to live on average is known as?
aleksley [76]
Perhaps, life expectancy...  That may be your answer.

6 0
2 years ago
Read 2 more answers
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