The PCAOB conducts a program of regular inspections to assess the degree of compliance of registered accounting firms with the rules and professional standards of the generally accepted auditing standards (GAAS).
Accounting, also known as accountancy, is the measurement, processing, and conversation of monetary and noneconomic data about monetary entities which include organizations and groups.
Fundamental accounting records and well-known shows coins flows and operations. It divides all commercial enterprise transactions into credits and debits. The definitions of these are particularly counterintuitive in monetary accounting: Debits increase asset or fee bills and reduce liability or fairness bills.
Learn more about accounting here:https://brainly.com/question/26380452
#SPJ4
reporting an amount on a financial statement as a percentage of another item on the same financial statement.
The correct option is (A) Vertical analysis.
A frequent technique for financial statement examination is called vertical analysis, which displays each line item on a statement as a percentage of a base figure within the statement.
Which division of accounting is responsible for information reporting to external users?
Financial accounting is the branch of accounting that focuses on providing data to users outside the company. False 6. When a company has two distinct sources of income, each type of income should have its own income statement.
On a financial statement, what does a figure in parenthesis mean?
A financial statement's parenthesized amount denotes an estimate. true, Managerial accounting is the branch of accounting with an emphasis on internal users of information reporting.
To know more about vertical analysis visit :-
brainly.com/question/30049196
#SPJ4
Complete question:
Expressing each financial statement item as a percentage of another amount on that statement is known as:
A. Vertical analysis
B. Horizontal analysis
C. Ratio analysis
D. Risk analysis
Which sentence indicates that Rudolph is following a market skimming pricing policy?
Rudolph launched his brand of high-end audio speakers called Rudebox. He introduced his first line of products at $40,000. He plans to periodically bring down the price. Very soon he will launch the second edition of Rudebox, which would be of a lower price range, and designed for the masses.
Answer:
Very soon he will launch the second edition of Rudebox, which would be of a lower price range, and designed for the masses.
Explanation:
Market skimming pricing policy, or price skimming is the pricing strategy that is used by business owners to make the initial price of a product high and then reduce it subsequently so more people can be able to afford it.
The sentence that shows that Rudolph is following a market skimming price policy is his decision to reduce the price of his Rudebox in a second edition which is designed for the masses.
Answer:
He plans to periodically bring down the price
Explanation:
Shaw Industries, a giant carpet manufacturer, increases its control over raw materials by producing much of its own polypropylene fiber, a key input to its manufacturing process. This is an example of
A. creating value by using related diversification to acquire market power by integrating vertically.
B. related diversification to acquire market power by pooling negotiating power.
C. related diversification to acquire economies of scope by integrating vertically to acquire market power.
D. related diversification to acquire economies of scope by leveraging core competencies.
It is an example of creating value by using related diversification to acquire market power by integrating vertically.
Market power can be defined as the degree to which a company can influence the prices of its goods and services. The larger the concentration of a firm in an industry, the higher its market power. For example, if the a firm constitutes 75% of an industry, its market power would be higher than that of a firm that constitutes 10% of an industry.
Vertical integration is when a firm expands its production capabilities by undertaking production of goods on its supply chain. An example is when the carpet manufacturer begins to produce its raw materials instead of buying it from third parties.
To learn more, please check: https://brainly.com/question/11773609?referrer=searchResults
ABC Inc. engages in a non-cash exchange with a third party whereby ABC Inc. issues common shares to the third party in exchange for some highly specialized Machinery & Equipment. The value of the shares issued was $15,000 while the appraised fair value of the Machinery & Equipment was $12,000. At what amount would this transaction be valued on ABC's books?
A. $12,000 under IFRS and $15,000 under ASPE.
B. $15,000 under IFRS and $12,000 under ASPE.
C. $12,000 under either ASPE or IFRS.
D. $15,000 under either ASPE or IFRS.
ABC Inc. issued 600 common shares and 200 preferred shares for a single lump sum amount of $20,000. The fair market value of the common shares on the date of issue was $23.50 per share. No current market price was available for the preferred shares. How much of the proceeds received should be allocated to the preferred shares on the date of issue?
A. $4,000
B. $4,400
C. $5,900
D. $8,000
A. $12,000 under IFRS and $15,000 under ASPE.
Under IFRS (International Financial Reporting Standards), the non-cash exchange transaction would be valued at the appraised fair value of the Machinery & Equipment, which is $12,000. This is because IFRS requires the initial recognition of assets acquired in a non-monetary exchange at their fair value.
Under ASPE (Accounting Standards for Private Enterprises), the transaction would be valued at the fair value of the shares issued, which is $15,000. ASPE allows for the option of valuing non-monetary exchanges at either the fair value of the asset given up or the fair value of the asset received, whichever is more reliably measurable. In this case, the fair value of the shares issued is the most reliable measure.
The difference in valuation arises due to the different accounting standards' requirements regarding the initial recognition of non-monetary exchanges. IFRS emphasizes fair value, while ASPE allows for more flexibility in valuing such transactions.
The proceeds received from issuing the common and preferred shares amount to $20,000. To determine the allocation to the preferred shares, we need to calculate the value of the common shares and allocate the remaining amount to the preferred shares.
The value of the common shares can be calculated by multiplying the number of common shares (600) by the fair market value per share ($23.50):
Value of common shares = 600 shares × $23.50/share = $14,100
The remaining amount after deducting the value of the common shares from the total proceeds will be allocated to the preferred shares:
Allocation to preferred shares = Total proceeds - Value of common shares = $20,000 - $14,100 = $5,900
Therefore, the proceeds received should be allocated to the preferred shares in the amount of $5,900.
Learn more about common shares here:
brainly.com/question/14504712
#SPJ11
if we are given an interest rate quoted on a bank discount basis for a particular money market instrument, then we can calculate the price of that instrument using the discount yield, the days to maturity divided by 360, and the
if we are given an interest rate quoted on a bank discount basis for a particular money market instrument The money market yield is the interest charge earned by way of investing in securities with high liquidity and maturities of much less than one yr such as negotiable certificates of deposit, U.S. Treasury bills, and municipal notes.
Money market yield is calculated through taking the keeping duration yield and multiplying it by a 360-day financial institution yr divided via days to maturity. It can also be calculated the use of a financial institution discount yield.
Which cash market contraptions are normally quoted on a cut price basis?Treasury payments (T-Bills) are quoted on a pure bank discount groundwork where the quote is introduced as a share of face fee and is determined by using discounting the bond the usage of a 360-day-count convention.
Is it true to invest in cash market?Money market cash are typically considered one of the most stable investments—they experience low volatility and are much less susceptible to market fluctuations. Money cash are also greater liquid than different investments with comparable returns, such as CDs, due to the fact they enable you to withdraw money or buy other investments quickly.
Learn more about money market here:
https://brainly.com/question/1305875#SPJ4PLEASE HELP QUICKLY: (FIRST ANSWER GETS BRAINLIEST) PERSONAL & FAMILY FINANCE
A company is giving away a free stuffed bear to promote its new store. Even if the bear is free for you, the item still cost money to make, as someone spent time, labor, and resources on it. What does this example BEST demonstrate?
entrepreneurial ability
rational self-interest
opportunity cost
Answer:
Opportunity cost
Explanation:
A company is giving away a free stuffed bear to promote its new store. This is the example of the Opportunity cost. The correct option is (C).
What do you mean by the Opportunity cost?Opportunity cost is the value of other commodities or services you must forgo in order to get your desired item. The term "cost" as used by economists typically refers to opportunity cost.
Opportunity costs have a value that can help people and businesses make more lucrative decisions.
Opportunity cost is a wholly internal expense that is only utilized for strategic consideration; it is not included in accounting profit and is not reported externally.
Therefore, a company is giving away a free stuffed bear to promote its new store. Even if the bear is free for you, the item still cost money to make, as someone spent time, labor, and resources on it. This is the example of the Opportunity cost.
To know more about the Opportunity cost, visit:
https://brainly.com/question/13036997
#SPJ2
Monetary policy deals with tax revenues and expenditures at the national level
true or False
False.
Monetary policy deals with the supply of money, interest rates, and the actions of central banks to regulate the economy. Tax revenues and expenditures are typically part of fiscal policy, which is related to government spending and revenue collection.
In order for money to work properly, the different pieces of currency in an economy should look similar to each other. This is an element of which characteristic of money?
A.) Limited supply
B.) Divisibility
C.) Acceptability
D.) Uniformity
Answer:
D.) Uniformity
Explanation:
I just did it it was correct and this is just if you need a second opinion.
In order for money to work correctly, the different pieces of currency in an economy should look similar to each other. This is an element of the Uniformity of money. Hence, Option D is correct.
What is currency?When a person wants to market or wants to purchase anything, it can be for self, or for a family member or for a friend, or for anyone else, they have to pay a certain amount of money and that money is known as the currency. Just like each nation has its own language, similarly, they also have its own currency.
For instance, if a person wants to buy or purchase anything in India, they have to use the Indian Rupee which is the currency of India, If one is in Saudi Arabia, they will use Saudi Riyal, and many more. There is a market which is known as the free market, in that market gold is also considered a currency. For smooth functioning of the currency, there should be uniformity of money.
Thus, Option D is correct.
Learn more about currency from here:
https://brainly.com/question/14372075
#SPJ5
Select the correct answer from each drop-down menu. in 2005, country a exported steel worth $5 billion to country b. steel producers in country b alleged that country a was steel into country b because country a’s selling price was 20% lower than the normal value. when the claims were proved valid, country b imposed of 20% on steel imports from country a.
DUMPING: A predatory pricing practice in which a foreign nation exports its commodities to another nation and sells them there for less than the local market rate.
Are there really 257 country on earth?Today, there are 195 nations in the world. This number includes the Vatican See and also the State of Palestine, two non-member observer nations, together with the 193 United Nations member states.
What constitutes country a ?In geopolitics and global politics, a nation appears to be a physical place. The dictionary describes it as "the land of either a nonviable fetus, abode, or citizenship; a governmental nation or state or its territory."
To know more about country visit:
https://brainly.com/question/4768796
#SPJ4
As a result, country B imposed a 20% tariff on steel imports from country A.
What is a dumping?Dumping is the act of selling a product in a foreign market at a price lower than the price charged in the domestic market or below the production cost. It is considered as an unfair trade practice.
What are the measures to counter dumping?Measures to counter dumping include imposing tariffs on the imported goods, which raises their price and makes them less competitive with domestic products. Another measure is the imposition of anti-dumping duties on the imported goods. Additionally, some countries also negotiate agreements with the exporting countries to limit the volume or value of their exports to the importing country. Some countries also use countervailing duties to counter the effects of subsidies provided to the exporting country's industries.
To know more about domestic market visit:
brainly.com/question/29317682
#SPJ4
if at 500 units of output, total fixed cost is equal to $10,000 and total variable cost is equal to $15,000. total cost is equal to .
The total cost will equal to $25000.
What is total cost?
Total cost is the sum of all expenditures made to generate a certain level of production; when this total cost is divided by the amount produced, average or unit cost is discovered.What is the formula for total cost?
As a result, total cost (TC) is the sum of fixed cost (FC) and variable cost (VC), or Kr + Lw = TC = FC + VC.What are the overall expenses and earnings?
Total revenue less all costs, both explicit and implicit, equals economic profit. Even though a corporation pays income taxes based on its accounting profit, its economic profit determines whether or not it will be financially successful.To know more about cost, checkout this link:
https://brainly.com/question/25109150
#SPJ4
The long-run market supply curve would be downward-sloping if the representative firms': a. Have different cost structures b. Have the same cost structures c. Have perfect information d. None of the above
The long-run market supply curve would be downward-sloping if the representative firms' have different cost structures (option a). This is because firms with lower costs can produce more output at lower prices, causing the supply curve to slope downwards as prices decrease.
The long-run market supply curve would be downward-sloping if the representative firms have different cost structures. In this scenario, as the market price increases, some firms with lower costs will enter the market, while firms with higher costs will exit. This will increase the total quantity supplied at each price, resulting in a downward-sloping supply curve.
If the representative firms have the same cost structures, the long-run market supply curve will be perfectly elastic, meaning that the quantity supplied will be constant at all prices. Having perfect information is not directly related to the shape of the long-run market supply curve. Therefore, the correct answer is a) Have different cost structures.
Learn more about long-run market supply here:
https://brainly.com/question/28025490
#SPJ11
Explain how test-marketing can increase profits.
Answer:
Test marketing holds a lot of importance for the company. It allows
the company to test their product in a small region so as to get an
idea whether the product will work in a bigger market or not.
Through this, the company can measure the performance of the
product and can decide whether it should be released nationwide
for sale. Through this, the company can estimate the earnings that
can be earned through this product beforehand.
Explanation:
Antoine is giving a speech about the national mall in washington,
d.c. and plans to highlight three key locations. first, he plans to talk about the capitol building, which is located on the east end of the mall. second, he plans to talk about the washington monument, which is located in the middle of the mall. finally, he plans to talk about the lincoln memorial, which is located on the west end of the mall. which pattern of organization is antoine using
Answer:
Spatial
Explanation:
The pattern of organization that antoine was using is SPATIAL PATTERNS OF ORGANISATION.
Spatial pattern of organization is the type of patterns that help to arranges or organized information according to how they exists in relation to another which is why SPATIAL pattern is useful in a situation where a writer wishes or desire to create a great mental picture of something which has several parts differentiated by physical location during a speech just as in the case of Antoine in which
he first plans to talk about the capitol building, located on the east end of the mall. The second location he plans to talk about was the washington monument, located in the middle of the mall while the third location he plans to talk about was the lincoln memorial, located on the west end of the mall. This shown that Antonie was using SPATIAL pattern of organisational when he was planning on how to give the speech reason been that the speech Antonie intended to speak about based on three locations was plan ,organized and arranged based on how the location fit together in physical space.
true or false, Military spending changed a great deal in the 1970s.
Answer:
false
Explanation:
eddie industries issues $885,000 of 8onds at 103. the amount of cash received from the sale is a.$858,450 b.$911,550 c.$885,000 d.$955,800
Eddie industries issues $885,000 of bonds at 103. the amount of cash received from the sale is $885,000. The correct answer is option c.
The amount of cash received from the sale can be calculated as follows:
Cash Received = Bond Issue Price * Par Value
Since the par value of the bonds is not given, we cannot calculate the exact cash received. However, we can estimate the par value by dividing the total proceeds by the issue price:
Par Value = Total Proceeds / Issue Price
Total Proceeds = Issue Price * Par Value
In this case, the issue price is 103%, or 1.03 in decimal form. Therefore, we can estimate the par value as:
Par Value = $885,000 / 1.03 = $859,223.30 (rounded to the nearest cent)
Using this estimated par value, we can calculate the cash received as:
Cash Received = Issue Price * Par Value = 1.03 * $859,223.30 = $884,999.99 (rounded to the nearest cent)
Therefore, the closest answer choice is (C) $885,000, which is the face value of the bonds.
To know more about bonds refer to-
https://brainly.com/question/17405470
#SPJ11
________ is the impact of currency exchange rate changes on the reported financial statements of a company. Group of answer choices Economic exposure Financial exposure Translation exposure Transaction exposure
Answer:
Im fairly sure the answer is Economic Exposure
hurry! #3
What soft skills should a customer service representative use when resolving customer issues?
negotiation and bartering
control and manipulation
empathy and humor
speed and knowledge
Answer:
empathy and humor
bramble corp. inc. had a beginning inventory of 100 units of product rst at a cost of $8 per unit. during the year, purchases were:
Bramble corp. inc. had a beginning inventory of 100 units of product rst at a cost of $8 per unit. during the year, purchases were: $2000.
How to determine the number of purchasesBased on the information provided, here is the breakdown of the purchases made by Bramble Corp. Inc.:
- The beginning inventory was 100 units of product RST at a cost of $8 per unit, totaling $800.
- The question does not specify the time frame for the purchases made during the year, so I will assume they were made in a single batch.
- Let's say Bramble Corp. Inc. purchased an additional 200 units of product RST at a cost of $10 per unit, totaling $2000.
- The total inventory now consists of 300 units of product RST, with a total cost of $2800 ($800 from the beginning inventory + $2000 from the purchases)
Learn more about inventory at
https://brainly.com/question/13163950
#SPJ11
Why is it important to have insurance?
It's important to have insurance so people can
protect themselves from losing a lot of money in
the event of an unpredictable event or something
happens to them or their property.
So individuals can defend against the possibility of
financial loss due to unpredictable event
So people can engage in risky behavior without
financial consequences
A and B
It's important to have insurance so people can protect themselves from losing a lot of money in the event of an unpredictable event or something that happens to them or their property. So individuals can defend against the possibility of financial loss due to unpredictable events. The correct options are a and b.
What is insurance?Insurance is a means of protection from financial loss in which, in exchange for a fee, a party agrees to compensate another party in the event of a certain loss, damage, or injury.
It is a form of risk management, primarily used to hedge against the risk of a contingent or uncertain loss.
Learn more about insurance, here:
https://brainly.com/question/27822778
#SPJ1
Hey y'all !! Can some body help me out!!
1.What is the role of engineer in development of nation.
2. Elucidate the importance of an animal doctor.
3.Finance sector is a very sensitive feild. Do you agree? Give reasons.
Thank you!!♡
Answer:
1.) Engineer play very important role in the development of society and nation. Engineer plan and build new bridges, huse building, roads, railways, dams, canals, etc. that helps agricultural, living, transportation and commuting. Appliance and gadgets at home are degined by engineers. They built the infrastructure and the tools necessary for progress.
2. A veterinary (Animal doctor) treat disease, disorders, and injuries in animlas. Most veterinary physician workbin clinical setting, treating animal directly.
3. Yeah, I do agree because finance sector is essential for day to day operation. It is the task of examining and controlling ecnomic transaction on the regular basic fir the financial sucess, based on law
When a team agrees on the level of performance expected by each member, they have a _____.
shared standard
collaborative effort
unified commitment
team structure
THE ANSWER IS SHARED STANDARD
Answer:
shared standard
Explanation:
Teamwork refers to the collective approach towards the completion of a common goal. Methods and sources are agreed upon by each member of the team and the focus is relied on the achievement of the goal. Each individual works together and extend their efforts collectively. Shard standard refers to the level of acceptance on a particular point that each team member agrees on. Merging at a certain point is very essential part of teamwork. Disagreement among the team members may cause the team work fall behind.
the following list includes temporary accounts from the december 31 adjusted trial balance of emiko company. use these normal account balances to journalize closing entries.
Journalizing the closing entries from the December 31 Adjusted Trial Balance for Emiko Company using the temporary accounts is as follows:
Closing Journal Entries:Debit Retained Earnings
Credit Dividends $33,000
Debit Sales $529,000
Credit Income Summary $529,000
Debit Income Summary $17,500
Credit Sales returns and allowances $17,500
Debit Income Summary $5,000
Credit Sales discounts $5,000
Debit Income Summary $213,300
Credit Cost of goods sold $213,300
Debit Income Summary $49,700
Credit Sales salaries expense $49,700
Debit Income Summary $15,000
Credit Utilities expense $15,000
Debit Income Summary $39,000
Credit Selling expenses $39,000
Debit Income Summary $105,000
Credit Administrative expenses $105,000
What are closing entries?Closing entries are the period's end journal entries to close temporary accounts to the income summary and the retained earnings.
Temporary accounts include revenues, expenses, net income or loss, and dividends.
The net result of the income summary is also closed to the retained earnings.
Learn more about closing entries at https://brainly.com/question/14675640
#SPJ1
Question Completion:Dividends $33,000
Sales $529,000
Sales returns and allowances $17,500
Sales discounts $5,000
Cost of goods sold $213,300
Sales salaries expense $49,700
Utilities expense $15,000
Selling expenses $39,000
Administrative expenses $105,000
Define a Small Scale Enterprise as per ‘MSMED Act, 2006’.
Explanation:
the Government of India has in acted, small and medium enterprises development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is an enterprise where the investment in plant and machinery is more than rate 25 lakh but does not exceed rate.
Discuss any four ways in which Specialization has
improved the economic development of Nigeria
Answer:
Specialization has helped in these four ways:
1. Has created economics of scale in Nigeria, which improve economic efficiency and increase output while reducing average costs at the same time.
2. Has improved the agricultural sector, which continues to be very important for the Nigerian economy.
3. Has helped bring the electrification of the country.
4. Has helped raise the standard of living in the country, because in general terms, the larger the economy, the higher the standard of living.
Why does the US import oil?
A.because it has exported too much oil
B.because it does not produce any oil
C.because it does not produce enough oil
D.because it has exported too little oil
Answer:
C. because it does not produce enough oil.
Explanation:
Although, the United States is one of the leading producers of oil, yet still import oil because it does not produce enough oil to meet the demand of its citizens. In other words, the United States consumes more than what she can produce.
Another reason is that most refineries in the United State are created basically for heavy crude whereas most of what she produce are light crude oil. The United States import the oil she is able to process while she export to other countries to complete the setup process.
The remedy to the above situation is when new refineries are built which are somewhat expensive or the existing refineries are upgraded to meet with the demand.
Answer:
D. Because it does not produce enough oil.
edg 2020.
consider the following events: part 2 insurance companies offer safe driver discounts to encourage insured individuals to drive safely. this is an attempt to
Insurance companies offer safe driver discounts to encourage insured individuals to drive safely. This is an attempt to mitigate risk and reduce the likelihood of accidents and claims.
By incentivizing safe driving behavior, insurance companies can ultimately save money by avoiding costly payouts for accidents and claims. Additionally, promoting safe driving habits can improve the overall safety of the roads and benefit society as a whole.
Insurance companies are financial institutions that provide risk management and protection against potential financial losses for individuals, businesses, and other organizations.
They offer insurance policies, which are contracts that transfer the risk of certain events or circumstances from the insured party (the policyholder) to the insurance company in exchange for premium payments.
The primary function of insurance companies is to pool the premiums paid by policyholders and use those funds to pay for potential claims or losses that may occur within the coverage terms.
Insurance companies use actuarial science and statistical analysis to assess the probability of certain events and determine the appropriate premium amounts to charge.
Visit here to learn more about Insurance companies brainly.com/question/32252879
#SPJ11
Which of the following is true regarding mechanistic companies?A. They are well adapted to deal with a dynamic business environment.B. They mostly follow a strategy of product/service differentiation.C. They have a decentralized decision-making process.D. They are efficient, rigid, and predictable, and they thrive in stable environments
The true statement about mechanistic companies is that they are efficient, rigid, and predictable, and they thrive in stable environments.
mechanistic companies are characterized by their efficiency, rigidity, and predictability. They thrive in stable environments where there is little need for rapid adaptation. These companies have a hierarchical organizational structure with centralized decision-making. They prioritize efficiency and cost-effectiveness, often relying on standardized processes and procedures.
Unlike organic companies, which have a more flexible and decentralized structure, mechanistic companies are not well adapted to deal with a dynamic business environment. Their focus on stability and predictability can hinder their ability to respond quickly to changes in the market.
Overall, mechanistic companies are efficient and predictable, making them suitable for stable environments where consistency and control are valued.
Learn more:About mechanistic companies here:
https://brainly.com/question/29869296
#SPJ11
Using an Internet-focused strategy, operations managers are outsourcing design, production, and shipping to other firms. This process is called a(n):
The process described above that involves internet-focused strategy is called an: inter-firm process.
Internet-focused strategy are mostly employed nowadays by most firms in conducting most of their operations that are outsourced. Operations such as design, shipping among others, cut across several firms.
This collaborative business partnership is a process that is based by trust can be referred to as interfirm process.
Therefore, the process described above that involves internet-focused strategy is called an: inter-firm process.
Learn more here:
https://brainly.com/question/14915291
Makenna, the outside sales rep for a brick and stone company, reads a report stating that building permits are down dramatically in her sales territory. She had noticed that things were slowing down, but now she has data confirming her impression. Based on this information, Makenna will help her company become more value-driven if she Multiple Choice advises the production and purchasing departments to produce or order smaller quantities of products. keeps the information to herself. avoids contact with competing firms in order to maximize value-driven marketing. pushes her customers to buy products whether they need them or not.
Given that things were slowing down in the organization, the company would be more value driven if she advises the production and purchasing departments to produce or order smaller quantities of products.
How is a company value driven?A company is said to be value driven if there is a conscious commitment in the organization by the heads of departments to create a corporate culture.
The culture that would be created here is one that would lead to better performance, ethical practice and good impact on the environment.
Read more on company culture here:
https://brainly.com/question/16049983
a five-year bond with a yield of 11% (continuously compounded) pays an 8% coupon at the end of each year. what is the bond's duration?
The bond duration of the five year bond with 11% compounded continuously and paid 8% coupon at the end of each year is equal to 4.256years.
Time period for bond = 5 years
Interest rate ( continuously compounded ) = 11%
Coupon paid at the end of each year = 8%
To calculate bond duration first calculate bond price.
Bond price
= 8× e^( -0.11 ) + 8× e^( -0.11 ×2 ) + 8× e^( -0.11 ×3 ) + 8× e^( -0.11 ×4 ) + 108× e^(-0.11 ×5)
= 86.80.
Bond duration
= ( 1/ 86.80) [ 8× e^(-0.11) + 2×8× e^(-0.11 ×2) + 3×8× e^(-0.11 ×3)+ 4×8× e^(-0.11 ×4)+ 5×108× e^(-0.11 ×5)]
= 4.256 years
Therefore, the bond duration for the given time period , compounded continuously and given coupon is equal to 4.256 years.
Learn more about bond here
brainly.com/question/17405470
#SPJ4