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yawa3891 [41]
3 years ago
6

A ten-year note is priced at par and has a (modified) duration of 7.8 years. A twenty-five year bond has a (modified) duration o

f 12 years and is priced at a discount. Your portfolio consists of some of the 10-year and some of the 25-year. Your portfolioâ s (modified) duration is:
Business
1 answer:
harina [27]3 years ago
6 0

Answer:

Between 7.8 and 12 Years

Explanation:

The modified duration of a portfolio is defined as a weighted average in the modified duration of an individual bonds. Therefore it will lie between the extreme values of the modified duration of the bonds in portfolio so that the weights are all positive.

In the context, the modified duration lies between 7.8 years and 12 years as the modified duration would always lie between the lowest modified duration and the highest modified duration of any bonds in a portfolio. Therefore the weights are value that will lie between these two years.

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Interest expense is not: Multiple Choice Incurred on long-term liabilities. Reported on the income statement. A fixed expense. L
ankoles [38]

Interest expense is not Incurred on long-term liabilities.

Option i) Incurred on long-term liability.

Interest expenses are not recorded in the balance sheet. It should be recorded in the income statement.

The interest expense is a non-operating expense recorded on the expenses side of the income statement and it does not show as notes payable.

The interest expense is shown as a fixed cost or fixed expense it will be changed as based on the short-term changes or completion of payable.

The interest expense shows a factor in determining a company's borrowing risk.

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5 0
2 years ago
An advertising agency is developing advertisements to promote a political candidate. one ad is a radio spot airing during "drive
brilliants [131]

Answer:

The radio spot should reply on the peripheral route to persuasion.

Explanation:

The peripheral route to persuasion happens when the audience chooses whether to concur with the message dependent on different cues, besides the strength of the contentions or thoughts in the message.

Peripheral route of influence isn't being convinced by actualities yet by fame and popularity. It is shallow and is generally based on attractiveness. There is no elaboration and crowds are passive. Individuals utilize mental alternate ways for this. Change through this course is impermanent and leaves rapidly.

5 0
3 years ago
Brandon Consulting Company is headquartered in Atlanta and has branch offices in Nashville and Birmingham. Brandon uses an activ
Citrus2011 [14]

Answer:

The Atlanta's cost allocated to Nashville will be $663,500.

Explanation:

Administration: $700,000 x 80% = $560,000

Legal: $138,000 x [18,000 ÷ (18,000 + 6,000)] = $103,500

Solution: $560,000 + $103,500 = $663,500.

3 0
3 years ago
Which of the following is not an form of money that was traded
Semmy [17]

Answer:

(D) because you cannot sell shells.

8 0
2 years ago
Tips are considered _____.<br> dividends<br> taxable income<br> gains<br> a bonus
adoni [48]
Tips are considered <u>taxable income.
</u>Although they are a bonus that you get from your customers, on top of your paycheck, you still have to pay a tax on your tips given that in America, tips are considered to be a type of income. You'd get a dividend from a company, not from customers. Gain is just another word for profit. <u>
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3 0
3 years ago
Read 2 more answers
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