A bond with a coupon rate of 10 percent sells at a yield to maturity of 12 percent. If the bond matures in 12 years, what is the Macaulay duration of the bond? What is the modified duration?

Q: Which components of audit risk can an auditor control? Explain

A: An auditor is a professional who is responsible for verifying a business entity's financial…

Q: The answer is somewhat close. The correct answer is 6.8810.

A: Given: Value of call = $1.44 Strike price = $25.60 Value of shares = $20 Interest rate = 2.5%…

Q: T or F: If an impairment loss is recognized under the US. GAAP later recovery of the loss is…

A: INTRODUCTION:- This question pertains to the accounting treatment of impairment losses under US…

Q: please explain 120/360

A: Solution: Interest amount is computed using formula = Principal * Interest rate * time Where time is…

Q: Explain the Rule of 72.

A: In investment and saving management, the doubling period techniques provide the valuation of the…

Q: E11.18

A: Annual Interest on Bonds = Face value of bonds x rate of interest x year = 2400000*7%*1 year  =…

Q: What is the solution is it 1600 as I stated above that is wrong

A: Tax credits are sums of money that taxpayers can deduct directly from their taxes. Tax credits, as…

Q: The current price of a stock is 25. The stock pays quarterly dividend of 0.02 with the first…

A: Given: Current stock price = 25 Dividend = 0.02 Rate of interest = 5% = 0.05

Q: THE SMITH COMPANY Using the business transactions below, complete T-accounts for the Smith Company.…

A: T Accounts    1. Cash Account Particular Debit Particular Credit         To capital A/c…

Q: where do all of the nonseparately stated items go on the form 1065?where is the net of all those…

A: Form 1065 is an informational type of return need to be filed by the partnership to the IRS.IRS…

Q: Q7-1. What is interest? Explain.

A: Interest is a financial term regularly used when money is lent or received as a loan. Interest…

Q: Which of the following GRI standards is topic-specific related? O GRI 102 O GRI 200 O GRI 103 GRI…

A: GRI Standards is one of the modular system that is being used. It contains three series of standards…

Q: 14. Which of the following is not an intangible asset? a.Patent b.Trademark c.Research and…

A: Solution:- Intangible asset means as follows:-

Q: 321,818 is incorrect. What is the correct answer?

A: Revenue: We consider unit sales and price per unit to determine total revenue.Variable Costs: Based…

Q: Question 8

A: When net credit sales is divided with average accounts receivable it results in receivable turnover…

Q: spatial distances

A: Spatial distance is actually the length of the path or straight line distance between two points. In…

Q: What is the answer to part b? Is it -1245? Is the sign negative or positive?

A: The inventory valuation includes two methods named as FIFO (First in First Out) and LIFO (Last in…

Q: E11.5

A: Face value of bonds outstanding on December 31, 2020 = Total Beginning Balance of Bonds Payable -…

Q: Explanation 1031 like-kind exchange

A:

Q: 605.53 is not the correct answer, please double check

A: Traditional Model & Expected Cash Flow Model: Traditional Approach - In the traditional…

Q: the differencwe between the new IFRS 15 and old IFRS 15

A: The acronym IFRS stands for International Financial Reporting Standards that provide the rules,…

Q: q23 Which of the following is not a requirement for the recognition of an intangible asset? Select…

A: Intangible asset: An assets which does not have any physical existence or substance and are…

Q: whats 1100+90

A: The question was a simple arithmetic problem that required adding two numbers together. In this…

Q: What is AAA (Section 1368(e))

A: The S corporation is a corporation that chooses to pass all income, losses, deductions, and all…

Q: the correct answer is 12.5

A: When a company goes public, it issues stocks to investors in exchange for capital. The investor who…

Q: The answer is somewhat close. The right answer is 1.5337 Please clarify

A: Stock price is $50 Strike price is $52 Risk free rate is 1% Time period is 3 months To Find: Value…

Q: 81 Which of the following is correct? I.      Direct origination costs – added to principal II.…

A: Origination Fees: It is the fees charged by the bank against the borrower for the creation of loan.…

Q: ROE  34.25% RNOA  17.28% What inference can I draw based on this ROE and RNOA

A: Return on equity (ROE) is a profitability ratio which shows the portion of net income available for…

Q: Mary, Inc. is considering a project for next year, which will cost $5 million. Mary plans to use the…

A: Mary's expected rate of return using the CAPM = 6.50%Explanation:Given information, Expected market…

Q: So the answer is  1394 or2450?

A: The deductible business expenses are the expenses which are incurred for business. If the expenses…

Q: An example of an appraisal cost would be: O Scrap O Process or product design O Product recalls O…

A: Cost of Good Quality is incurred in order to reduce the Cost of Poor Quality, so that overall Cost…

Q: am. 177.

A: The correct answer is:D. none of theseBecause Stephen Erickson's four-step process includes all of…

Q: An asset is depreciated over whichever is longer, the asset's service life or physical life. True or…

A: Depreciation is an accounting method in which the cost of the asset is allocated  over its useful…

Q: 12.2 What are three depreciable costs that are included in an asset's basis?

A: Every fixed asset loses its value over the period of time. Depreciation is recorded in order to…

Q: two questions

A: Prepare an income statement.

Q: E11.4

A: Bonds payable: It is a long term liability to the organization issuing it. It is issued to raise…

Q: Please describe a scenario that is modeled by the following scenario: .0574 (12-18) 1+ 12 385 145130…

A: The scenario represented using the given computation is the future value of the annuity.

Q: The loss of material during production that does not have any recoverable value are classified as…

A: Introduction: Material Loss: While producing , packing and storing some extent goods are damaged…

Q: Question No 01                                                                   What is a…

A: Partnership- It is an agreement between two or more people to contribute capital to a business,…

Q: What is the limitation on loss utilization? 4. Look at the special charitable contribution rule.

A: There is a flow of the income or loss or any other things which a shareholder get from the…

Q: 22 An example of a prevention cost would be: Scrap O Product recalls O Adjusting test equipment O…

A: Preventive costs are the costs that a company incurs to prevent defects from occurring in a product…

Q: IFRS allows, but does not require, revaluation of property, plant, and equipment to fair value. True…

A: The International Financial Reporting Standards, or IFRS, are a collection of worldwide accounting…

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.