The convexity of the bond is 61.810 and the duration of the bond is 7.330 years.
<u>Explanation</u>:
- A newly issued bond has a maturity of 10 years. It pays a 7.7% coupon rate. The coupon payments will receive each year. Using the coupon payments the year will be reduced.
- The maturity year will get reduced. So the duration of the bond is approximately 7.330 years. If the bond is sold at par value the convexity can be calculated using the number of years.
- So the convexity of the bond is 61.810.
Answer:
$1,079 billion
Explanation:
Calculation to determine what Gross domestic product is
Using this formula
Gross domestic product = Personal Consumption Expenditures + Gross Private Domestic Investment + Government Purchases + Net exports
Let plug in the formula
Gross domestic product = $475 + $300 + $315 + ($249 - $260)
Gross domestic product =$475 + $300 + $315 + +$11
Gross domestic product = $1,079 billion
Therefore Gross domestic product is $1,079 billion
Answer:
Revision is a process in writing of rearranging, adding, or removing paragraphs, sentences, or words. Writers may revise their writing after a draft is complete or during the composing process
Explanation:
Answer:
D. $4,902
Explanation:
Schickel Inc.
RELEVANT COST can be defined as the cost that are often said to be incurred only when making specific and important business decisions because this relevant cost is used to determine whether to sell or keep a business which is why relevant cost concept is useful for eliminating some information from a particular decision-making process.
Relevant cost=
New stocks of the material purchased for $6.45 per liter.
Relevant cost of 760 liters of the material to be used.
Hence;
= $6.45 per liter ×760 liters = $4,902
Therefore the relevant cost of the 760 liters of material B39U is $4,902
