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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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A non-discriminating monopolist will find that marginal revenue:
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is less than average revenue or price

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4 years ago
In a global context, economic development is _________________ correlated with the level and efficiency of financial markets and
o-na [289]

Answer:

Highly

Explanation:

In a global context, economic development is highly correlated with the level and efficiency of financial markets and institutions.

Financial markets can be defined as any marketplace where the trading of securities occurs.

Types of financial markets includes:

1. Money market

2. Foreign exchange market (forex)

3. Bond market

4. Over the counter market

5. Stock market

Economic development refers to the process by which a state improves the economic, political, and social well-being of its citizens. It involves structural transformation, technological innovation and industrial upgrading which will increase labor productivity and improvements in infrastructure.

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1. Traditional stage

2. Pre-condition for take off stage

3. Take off stage

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5. Age of high mass consumption stage

Answer:

Highly

Explanation:

In a global context, economic development is highly correlated with the level and efficiency of financial markets and institutions.

3 0
3 years ago
According to the U.S. Department of Labor Statistics, in 2009 high school graduates made approximately _____ more a year than th
iragen [17]
<span>According to the U.S. Department of Labor Statistics, in 2009 high school graduates made approximately $ 32,544/Year, <span>whereas</span>,</span><span> those who did not complete high school </span>made approximately $23,664.
Which mean the ones who graduated the high school earned around $10,000 more than the ones without a high school degree.

3 0
3 years ago
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The Fed threw a lot of money at the financial crisis in 2008 to unfreeze credit markets and encourage economic activity. As part
Vinvika [58]

Answer:

The actions of the Fed in 2009 are consistent with an expansionary monetary policy and this policy reduces or keeps interest rates low.

When the Fed bought that many government securities, they flooded the economy with $300 billion in cash. This cash would make its way into the pockets of people and into their bank accounts as savings.

With that many savings, banks would have much more money to loan out to people and as a result of this increase in the supply of loanable funds, interest would fall in order to entice people to borrow more of these excess funds.

3 0
3 years ago
Losses on the cash sales of property, plant, and equipment:
Andreyy89

Answer:

c. Are the excess of the book value over the cash proceeds.

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The property, plant, and equipment are classified as the fixed assets which are reported in the asset side of the balance sheet

If the cash sales of property, plant, and equipment are sold more than the book value then it would be the gain.

But if the cash sales of property, plant, and equipment is sold less than the book value than it would be the loss to the company.

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