Answer:
c. not affect the bond's duration.
Explanation:
The bond duration measures the sensitivity of a bond's price to change in the interest rate. It is a linear measure of those years in which the repayment of the principal is due. the change in interest rate does not affect the duration of the bond.
On the other hand decrease in interest rate would increase the bond's PV and Price of the bond as well.
Payment frequency would not change with the decrease interest rate.
The Coupon rate will also remain the same whether the interest rate increases or decreases.
Answer:
$492
Explanation:
The computation of the total salary for the month is shown below:
= Base salary of a sales women + commission amount
where,
Base salary of a sales women = $420
And, the commission amount is
= ($8,200 - $7,000) × 6%
= $72
So, the total salary for the month is
= $420 + $72
= $492
Basically we added the base salary and the commission amount for computing the total salary
Answer:
The correct answer is letter "B": develop a business plan.
Explanation:
Entrepreneurs who lack funds to start their ventures should develop a business plan so it can be presented to prospective investors who will decide if the venture is of their interest or not. The business plan should include the mission and vision of the business as well as a <em>SWOT (Strengths, Weaknesses, Opportunities, and Threats) analysis</em> explaining how the business will mitigate its risks and maximize its benefits.
The business plan should be innovative in Peppy's case since pizzerias are very common, thus, Pepe's Pizzazzeria must have a clear competitive advantage to face competitors.
Answer:
d. Debit Bad Debt Expense; Credit Accounts Receivable
Explanation:
This would be the entry needed to write-off this account. This is an example of the direct write-off method of accounting. This is a method that is employed to recognize bad debts expense that arises from credit sales. This method does not permit allowance account. Instead, an account receivable is written-off directly to expense after the account is determined uncollectible.
