Answer: b. The duration of its liabilities must equal the duration of its assets
Explanation:
Since the company wants to structure its assets and liabilities such that its equity is unaffected by interest rate risk, then the duration of its liabilities must equal the duration of its assets.
It should be noted that when the duration of its liabilities is shorter than the duration of its assets, the duration gap is positive and when there's a rise in interest rate, the worth of assets will be affected more.
When duration of its liabilities is longer than the duration of its assets, the duration gap is negative and when there's a rise in interest rate, the worth of liabilities will be affected more.
Finally, when the duration of its liabilities is equal the duration of its assets, its equity is unaffected by interest rate risk.
Answer:
The answer to this question is option C. $560
Explanation:
We can let the price of each hollow pine door = d and of each solid oak door = 2d.
Since each pine door = 40, d = 40, and the regular price of each solid oak door is (2)(4) = 80.
With a 25% discount, each solid oak door is 0.75(80) = 60.
So, the six oak doors cost 6 x 60 = 360 dollars, and the five pine doors cost 5 x 40 = 200 dollars. Thus, the total is 560 dollars.
Hence the answer is C
True Because they have preperations for your tests
Answer:
$ 25
Explanation:
As per the description, the exact amount that is being contributed from the corn bushel to the Gross Domestic Product would be $ 25. The price at which the farmer sold it to the supermarket would not be included in the GDP because it would be considered as an intermediary good because the good purchased for the resale purpose is not included in GDP as it leads to double-counting. Thus, <u>only the price of the final good i.e. $ 25 would be included in GDP as it will now be used for final consumption by the customers</u>.
A
A lot of Money in that business
