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3 years ago

Which of the following is true about duration and modified duration?

Business

1 answer:

My name is Ann [436]3 years ago

4 0

Answer:

The truth about Macaulay Duration and Modified Duration is:

d. All are true.

Explanation:

Principally, the Macaulay Duration, used mainly with immunization strategies, measures the weighted average time an investor holds a bond until the period when the present value of the bond’s cash flows equals to the initial bond amount.

On the other hand, the Modified Duration, providing a risk measure by being sensitive to interest rates, identifies the amount by which the duration changes for each percentage change in the yield and, at the same time, measures how the amount of a change in the interest rates impacts a bond's price.

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The first step in the process of creating a marketing plan is to

Maksim231197 [3]

The right answer for the question that is being asked and shown above is that: "• set marketing objectives." The first step in the process of creating a marketing plan is to <span>set marketing objectives. The group must know the goals and objectives why they are making a business or something.</span>

7 0

3 years ago

Partner Industries sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when antici

Vera_Pavlovna [14]

Answer:

b. $20.

Explanation:

Regardless of what the break-even volume is, at this volume profits are zero.

This means that any unit sold beyond this point will provide a profit equivalent to its marginal benefit, which is its selling price subtracted by its variable cost.

If a product sells for $50 and has a variable cost of $30, by selling one unit in excess of its break-even volume, the profit will be:

$P= \$50-\$30 =\$20$

The profit will be $20.

8 0

3 years ago

Aces, Inc., a manufacturer of tennis rackets, began operations this year. The company produced 6,000 rackets and sold 4,900. At

SVETLANKA909090 [29]

Answer:

$165,500

Explanation:

Given that,

Sales (4,900 × $90) = $ 441,000

Cost of goods sold (4,900 × $38) = 186,200

Gross margin = $ 254,800

Selling and administrative expenses = $75,000

Net income = $ 179,800

Production costs per tennis racket total = $38

Variable production cost = $25

Fixed production cost = $13

Units produced = 6,000

Contribution margin:

= Sales - Variable production costs

= $441,000 - (4,900 × 25)

= $441,000 - $122,500

= $318,500

Fixed costs = Fixed production costs + Selling and administrative expenses

= ($13 × 6,000) + $75,000

= $78,000 + $75,000

= $153,000

Net income under variable costing:

= Contribution margin - Fixed costs

= $318,500 - $153,000

= $165,500

8 0

3 years ago

a manufacturing plant averaged $740 of raw materials .$320 of work in process inventory and $1010 of finished goods inventory du

Vika [28.1K]

Answer:

4.83 times

Explanation:

The computation of the inventory turnover is shown below:

= Cost of goods sold ÷ average inventory

where,

Average inventory = Raw material inventory + work in progress inventory + finished goods inventory

= $740 + $320 + $1,010

= $2,070

And, the cost of good sold is $10,000

Now put these values to the above formula

So, the answer would be equal to

= $10,000 ÷ $2,070

= 4.83 times

6 0

3 years ago

What is a dollar vote

nikdorinn [45]

Answer:

Dollar voting is an analogy that refers to the theoretical impact of consumer choice on producers' actions by means of the flow of consumer payments to producers for their goods and services.

5 0

1 year ago