Based on the given information Maxine should not use her emergency fund to take this super rare opportunity as it is intended to use in an unforeseen situation.
What is an emergency fund?
An emergency fund is said to be savings that an individual intended do in order to meet challenges that are not predictable and unforeseen for them.
An emergency fund shouldn't be used for a planned vacation or other predictable expenses; rather, it should only be used in the event of an unexpected event. You don't have to deprive yourself of small comforts in life.
In the given case, the music concert is not an unforeseen event is a planned vacation so the emergency fund should not be utilized.
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Consider the following scenario: In January, 8 million people were seeking jobs but did not succeed. In February, 2 million of these people gave up and stopped looking for work. Holding all else constant, what happened to the unemployment rate in February?
The unemployment rate in February would remain the same as it was in January.
This is because the unemployment rate is calculated with the number of people currently seeking work, not the number of people that were looking for work in the previous month.
Therefore, the 8 million people who were looking for work in January would not be included in the February unemployment rate calculation. The fact that 2 million of these people gave up and stopped looking for work in February would not affect the unemployment rate because they were not included in the calculation.
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as the recipient of their customer's efforts, the supply firm manager has the opportunity to improve the relationship with the customer. improved relationships can result in increased market share, growth opportunities and other benefits. group of answer choices mod sdp sop pos pods flag question: question 44
As the recipient of their customer's SD efforts, the supply firm manager has the opportunity to improve the relationship with the customer.
The supply curve indicates us the quantity that a firm will produce at extraordinary fees. Discern 7.21 "The deliver Curve of an individual firm" exhibits something great: the individual supply curve. It's far the same as a company's marginal fee curve. of the firm is the marginal value curve.
The deliver curve is a image illustration of the correlation between the fee of an excellent or provider and the quantity supplied for a given duration. In a typical illustration, the rate will appear on the left vertical axis, whilst the quantity provided will appear at the horizontal axis.
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For the pizza seller whose marginal, average variable, and average total cost curves are shown in the graph below, what is the profit-maximizing level of output and how much profit will this producer earn if the price of pizza is $2. 50 per slice?.
Based on the prize of the pizza and the profit maximizing level, the profit at this point would be $550.
What would be the profit?First find the profit maximizing point which is:
Price = Marginal cost
At a price and marginal cost of $2.50, the quantity sold is 550 slices.
The profit is therefore:
= (price x quantity) - Average cost x Quantity
= (2.50 x 550) - (1.50 x 550)
= $550
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1. The types of businesses that can operate in a community are regulated by local
A community incentives.
B. zoning laws.
C. chamber of commerce members
D. economic indicators
Answer:
B. zoning laws.
Explanation:
Zoning laws are regulations put in place by the local authorities that dictate how real estate properties can or cannot be used in different geographical zones. Zoning laws can prohibit or limit properties in certain areas to be used for commercial or industrial purposes. For example, zoning laws may not allow the development of commercial buildings in residential neighborhoods.
Zoning shows whether specific geographic areas are acceptable for commercial purposes.
Pays a higher interest rate than a savings account Limited check-writing ability Offers benefits of both savings and checking accounts Require a higher balance than a savings account FDIC insured What does this describe
Based on investment strategies, and descriptions in the question, the phrase that describes the content well, is Money Market Account.
What is Money Market Account?Money Market Account is a term that is used to describe the type of account that is considered to be an interest-bearing account at a bank or credit union.
Usually, it can be referred to as Money market deposit accounts (MMDA), with unique features that are not found in other types of accounts.
Features of Money Market Account are:It pays a higher interest rate than a savings account Limited check-writing abilityIt offers benefits of both savings and checking accountsIt requires a higher balance than a savings accountIt is insured by the Federal Deposit Insurance Corporation(FDIC)Hence, in this case, it is concluded that the correct answer is Money Market Account.
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Tickets to a fundraiser are $14 if purchased ahead of time and $25 if purchased at the door. The total amount raised from all ticket sales was $625. If eleven tickets were purchased at the door, how many tickets were purchased ahead of time?.
Pls asp
In the United States, which of the following is only provided by the government?
O Health Care
O Police
O Railroads
O Housing
Answer:
Police
Explanation:
I asked Alexa and that's what she said xD
Using the same quiz format, steps required to answer questions, and submission deadlines for both pars and kcs are examples of which of the eight golden rules for hci design?.
Examples of the eight golden standards for hci design's Strive for consistency include using the same quiz structure, procedures needed to answer questions, and submission dates for both pars and kcs.
In interface design, every component, theme, animation, and action should stay consistent throughout the experience. The user will probably be perplexed, for instance, if the interface alters the button's color and Strive for consistency font while the user is using it. The concept of consistency extends beyond a single application. For instance, websites frequently share basic elements like the corporate logo in the upper left corner and the top menu. These patterns have emerged through time, been described by usability professionals, and incorporated by designers into common practice.
Between pages of one application or between still-related applications, Strive for consistency is required. The key is that authorized users, including the majority of inexperienced users, can still view sites that are seen as still being in dialogue or as still having a connection to the program in use. Users won't be afraid to switch applications as a result of feeling at ease with the application.
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The question was incomplete. Check below the full question.
Using the same quiz format, steps required to answer questions, and submission deadlines are examples of which of the Eight Golden Rules for HCI Design?
a. Supporting internal locus of control
b. Offering informative feedback
c. Strive for consistency
d. Reducing short-term memory load
Which of the following is an example of a direct tax?
Gasoline tax
Personal property tax
Real estate tax
Sales tax
Answer:
Personal Property Tax
Explanation:
Indirect taxes are taxes that are collected by the government indirectly meaning that there is a "middle man." Sales taxes and gasoline taxes are indirect because the taxes must be collected first by the stores and gas stations before going to the government.
Direct taxes are taxes paid straight to the government ie, property taxes, income taxes, etc.
An example of a direct tax from the following is the personal property taxes.
Option B is the correct answer.
What is meant by taxes?Taxes are the obligation of the taxpayers which need to be paid every year in respect of the income earned by them.
The taxes are classified into two types namely, direct taxes and indirect taxes. Direct tax is a form of liability that is paid by the taxpayer to the government whereas indirect tax is the amount that is charged from the customers but actually paid by the supplier to the government.
Therefore, property taxes are one example of direct taxes.
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Boris works for Nefarious Corp. Boris's job is to steal genetic engineering trade secrets from the Gentle Lamb Company. He does this by dating employees of Gentle Lamb Company and stealing their access information (e.g., logon and password). Boris is a(n) _____________ who uses the computer system as a __________.
Answer:
Industrial spy; tool.
Explanation:
An industrial spy refers to an individual who is saddled with the responsibility of covert and an illegal theft of data (informations) such as business trade secrets and other sensitive data, for use by its principal in order to give them a competitive advantage in the industry. Thus, the activities or actions performed by an industrial spy is generally considered to be unethical and may be punishable with an appropriate legal instrument.
In this scenario, Boris works for Nefarious Corp and his job is to steal genetic engineering trade secrets from the Gentle Lamb Company. Boris does this by dating employees of Gentle Lamb Company and stealing their access information (e.g., logon and password).
Hence, Boris is an industrial spy who uses the computer system as a tool.
A tool refers to the device that is being used by a spy to gain an unauthorized access to other people's data (informations).
The application of scientific knowledge to the development and improvement of goods and services is generally referred to as ______. Multiple choice question. technology information production
Answer:
Technology.
Explanation:
As the definition is seen above, these qualities are directed towards technology. Technology has advanced produce and sales of goods and services a lot. It shows itself in fastening and making production easier. And also in different other forms that come as advertising, E-commerce, communication etc. Orders of certain goods are been sent thousands miles away from the producing country and are seen to be received safe and sound at the other end of the purchase country. Also adverts can be seen of a Chinese product in far away Africa through television commercials and also internet.
He price of xyz stock rises from $10 to $15. if you own 100 shares, your capital gain is blank______. multiple choice question. $100 $10 $500 $5
If the price of XYZ stock rises from $10 to $15, and you own 100 shares, your capital gain would be $500.
To calculate the capital gain, we need to find the difference between the selling price and the purchase price, and then multiply it by the number of shares owned.
Purchase price per share = $10
Selling price per share = $15
Number of shares owned = 100
Capital gain = (Selling price per share - Purchase price per share) * Number of shares owned
= ($15 - $10) * 100
= $5 * 100
= $500
Therefore, your capital gain is $500.
If the price of XYZ stock rises from $10 to $15, and you own 100 shares, your capital gain would be $500.
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HEY guys can yall help me im trying to get caught up on school work before november 30.
What techniques are required to accept constructive criticism? Select all that apply.
A. not interrupting or speaking until the other person is finished making a point
B. filing a formal complaint with human resources to make sure your point of view is documented
C. not frowning, sneering, or defensively folding arms in front of you
Answer:
i think its letter A and C
the ratio of costs to charges is calculated by dividing an organization’s
The ratio of costs to charges is calculated by dividing an organization's total costs by its total charges. This ratio is also known as the cost-to-charge ratio or CCR. The CCR is an important financial metric for healthcare organizations, particularly hospitals.
The CCR helps to determine the actual cost of providing care to patients, which is different from the charges that the organization bills to patients or their insurance companies. By dividing the total costs by the total charges, the CCR gives an estimate of the percentage of charges that are actually used to cover costs.
For example, if a hospital has total costs of $10 million and total charges of $20 million, the CCR would be 0.5 or 50%. This means that the hospital spends 50 cents of every dollar earned on covering costs.
The CCR is used to calculate reimbursement rates from Medicare and Medicaid. It is also used to evaluate the financial performance of healthcare organizations and to make strategic decisions regarding pricing and cost management.
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plot a firm's stock returns versus the market portfolio returns using data for a fixed period of time. the slope of the straight line fitted to those points is called
The slope of the straight line fitted to the points representing a firm's stock returns versus the market portfolio returns is called the beta coefficient (β).
The beta coefficient is a measure of a stock's systematic risk or volatility in relation to the overall market. It indicates the sensitivity of a stock's returns to the returns of the market portfolio.
When plotting a firm's stock returns on the y-axis and the market portfolio returns on the x-axis, the slope of the line that best fits the data points represents the beta coefficient. The beta coefficient quantifies the stock's relative volatility compared to the market.
If the slope (beta) is greater than 1, it indicates that the stock is more volatile than the market. A beta of less than 1 suggests that the stock is less volatile than the market. A beta of exactly 1 implies that the stock's volatility is in line with the market.
The slope of the straight line fitted to the points representing a firm's stock returns versus the market portfolio returns is called the beta coefficient (β). It is a measure of the stock's systematic risk or volatility in relation to the overall market.
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Your brother has asked you to help him with choosing an investment. He has $5,000 to invest today for a period of two years. You identify a bank term deposit that pays an interest rate of 4.25 percent with the interest being paid quarterly. What will be the value of the investment in two years?
How to Apply the Rule of 72. According to the Rule of 72, $1 invested at a 10% yearly constant interest rate would increase to $2 after 7.2 years ((72/10) = 7.2). In reality, a 10% investment will double in 7.3 years ((1.107.3 = 2)).
How much entertainment, compounded annually, would it take to double a fund in six years?You may also calculate it backwards: divide 6 by 72 to get that a hobby charge of roughly 12 percent will be needed if you want to quadruple your money in six years.
What hobby costs how much per year if you want to double your money in three years?How to Apply the Rule of 72. For instance, the Rule of 72 stipulates If you want to double your money in three years, your investments must provide annual returns of between 21% and 24% (72/3 years). Similar to this, if you want to double your money in five years, your assets must grow at a rate of about 14.4% per year (72/5).
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Which of the following describes how the U.S. government protects and supports farmers and ranchers?
through establishing and maintaining food standards
through programs that provide direct payments
through allowing agribusiness companies to create oligopolies
through strict measures of qualis for commodities
first one to get it right gets Brainliest
Answer:
through allowing agribusiness companies to create oligopolies
Explanation:
Answer:
through programs that provide direct payments
Explanation:
The United States government gives free money to farmers and ranchers through a government subsidiary.
Consider two neighboring island countries called Euphoria and Bellissima. They each have 4 million labor hours available per month that they can use to produce rye, jeans, or a combination of both. The following table shows the amount of rye or jeans that can be produced using 1 hour of labor. Country Rye Jeans (Bushels per hour of labor) (Pairs per hour of labor) Euphoria 4 16 Bellissima 6 12 Initially, suppose Bellissima uses 1 million hours of labor per month to produce rye and 3 million hours per month to produce jeans while Euphoria uses 3 million hours of labor per month to produce rye and 1 million hours per month to produce jeans. Consequently, Euphoria produces 12 million bushels of rye and 16 million pairs of jeans, and Bellissima produces 6 million bushels of rye and 36 million pairs of jeans. Assume there are no other countries willing to trade goods, so, in the absence of trade between these two countries, each country consumes the amount of rye and jeans it produces. Euphoria's opportunity cost of producing 1 bushel of rye is __(1/2, 1/4, 2, 4)___ pairs of jeans, and Bellissima's opportunity cost of producing 1 bushel of rye is __(1/2, 1/4, 2, 4)___ of jeans. Therefore, __(Euphoria or Bellissima)__ has a comparative advantage in the production of rye, and___ (Euphoria or Bellissima)__ has a comparative advantage in the production of jeans. Suppose that each country completely specializes in the production of the good in which it has a comparative advantage, producing only that good. In this case, the country that produces rye will produce____million bushels per month, and the country that produces jeans will produce____million pairs per month. In the following table, enter each country's production decision on the third row of the table (marked "Production"). Suppose the country that produces rye trades 14 million bushels of rye to the other country in exchange for 42 million pairs of jeans. In the following table, select the amount of each good that each country exports and imports in the boxes across the row marked "Trade Action," and enter each country's final consumption of each good on the line marked "Consumption." When the two countries did not specialize, the total production of rye was 18 million bushels per month, and the total production of jeans was 52 million pairs per month. Because of specialization, the total production of rye has increased by____million bushels per month, and the total production of jeans has increased by____million pairs per month. Because the two countries produce more rye and more jeans under specialization, each country is able to gain from trade. Calculate the gains from trade—that is, the amount by which each country has increased its consumption of each good relative to the first row of the table. In the following table, enter this difference in the boxes across the last row (marked "Increase in consumption"). Euphoria Bellissima Rye Jeans Rye Jeans (Millions of bushels) (Millions of pairs) (Millions of bushels) (Millions of pairs) Without trade Production 12 16 6 36 Consumption 12 16 6 36 With trade Production ______ ______ ______ ______ Trade action (Export 14 or Import 14) (Export 42 or Import 42) (Export 14 or Import 14) (Export 42 or Import 42) Consumption _____ ______ _______ ________ Gains from trade Increase in consumption ________ _______ there should be two more answe spots under rye and jeans Also the rye and jeans should be over the numbers, I just messed up th table and cant shift it for some reason
From the table given, it can be deduced that Bellissima has comparative advantage in rye while Euphoria had comparative advantage in jeans.
What is comparative advantage?It should be noted that comparative advantage simply means the ability of an economy to produce a good at a lower opportunity cost.
In this case, Euphoria's opportunity cost of rye will be:
= 16/4 = 4 jeans.
Bellisima's opportunity cost of rye will be:
= 12/6 = 2 jeans
Therefore, Bellissima has comparative advantage in rye while Euphoria had comparative advantage in jeans.
When there's complete specialization, Bellisima will produce:
= 6 × 4 = 24 million ryes
Euphoria will produce:
= 16 × 4 = 64 million jeans
After trade, the increase in production of rye will be:
= 24 - 18 = 6 million.
The increase in production of jeans will be:
= 64 - 52
= 12 million
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what is business? for a boss?
financial and managerial accounting are similar in that both question content area bottom part 1 a. are designed to meet the needs of managers. b. use information provided by the internal accounting system. c. provide information primarily to external users. d. are regulated by outside regulatory agencies and commissions. e. primarily emphasize future operating results and goals.
Both financial and managerial accounting are similar because they b. use information provided by the internal accounting system.
How are managerial and financial accounting similar?Financial accounting is meant for the external environment and as such follows regulations from relevant bodies. It still uses internal information however.
Managerial accounting is concerned with providing information for internal users in the company and like financial accounting, the source of its data is internal company information.
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Claire Corporation is planning to issue bonds with a face value of $ 100,000 and a coupon rate of 8 percent. The bonds mature in two years and pay interest quarterly every March 31, June 30, September 30 , and December 31. All of the bonds were sold on January 1 of this year. Claire uses the effective-interest amortization method and also uses a discount account. Assume an annual market rate of interest of 12 percent.
Required:
(a) Provide the journal entry to record the issuance of the bonds.
The coupon rate, maturity date, and interest payment schedule provided in the question are not relevant to recording the issuance of the bonds. The journal entry only focuses on the initial transaction of selling the bonds and does not consider subsequent interest payments or amortization of the discount account.
To record the issuance of the bonds, the following journal entry needs to be made:
January 1, [Year]:
Dr. Cash [for the total amount received from selling the bonds]
Cr. Bonds Payable [for the face value of the bonds]
Explanation:
- The debit to the Cash account represents the amount received by Claire Corporation from selling the bonds, which is the face value of $100,000.
- The credit to the Bonds Payable account represents the liability created by issuing the bonds with a face value of $100,000.
It is important to note that the coupon rate, maturity date, and interest payment schedule provided in the question are not relevant to recording the issuance of the bonds. The journal entry only focuses on the initial transaction of selling the bonds and does not consider subsequent interest payments or amortization of the discount account.
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ANSWER ASAP-- In one year, Corey earned $25,000 from his employer and a $300 capital gain from the sale of an investment. Corey doesn’t qualify for any deductions, but he can claim the lifetime learning credit.
Corey’s adjusted gross income is BLANK
and his total tax due will be (decreased or increased)
by the credit.
Answer:
Corey’s adjusted gross income is $25,300 and his total tax due will be decreased by the credit.
Explanation:
Add what Cory earned and his capital gain to make $25,300
Cory claimed the lifetime learning credit which decreases his total tax due
the most effective budgeting approach, where lower level employees are involved in the budgeting process is called: master budgeting associative budgeting participative budgeting top-down budgeting
The most effective budgeting approach, where lower level employees are involved in the budgeting process, is called participative budgeting.
Participative budgeting is a budgeting approach that involves employees at various levels of the organization in the budgeting process. It encourages collaboration, input, and active involvement from employees who have first-hand knowledge of the day-to-day operations and resource needs of their respective departments or teams. This approach allows for greater ownership, engagement, and commitment to the budgeted goals and targets.
By including lower level employees in the budgeting process, participative budgeting promotes better communication, transparency, and accountability throughout the organization. It can also lead to more accurate and realistic budgeting, as those closest to the work can provide valuable insights and suggestions.
In contrast, other budgeting approaches like top-down budgeting involve higher-level managers or executives setting the budget targets without significant input from lower level employees. While top-down budgeting may offer efficiency and centralized decision-making, it may lack the detailed knowledge and buy-in from employees that participative budgeting provides.
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An example of an asset is:
Answer:here
Explanation: A company lists its assets with a dollar amount on balance sheets. Assets are made up of liabilities and equity on the balance sheet.
Stockholders equity is composed of contributed capital and retained earnings.
a. true
b. false
Stockholders' equity is composed of contributed capital and retained earnings are true.
Stockholders' equity is made out of contributed capital and held income. The four essential fiscal reports are the Income Statement, Statement of Retained Earnings, Balance Sheet, and Statement of Cash Flows. Lenders use bookkeeping data to assess whether to credit cash to an organization.
Stockholders' equity, also referred to as shareholders' or owners' equity, is the remaining amount of assets available to shareholders after all liabilities have been paid. It is calculated either as a firm's total assets less its total liabilities or alternatively as the sum of share capital and retained earnings less treasury shares. Stockholders' equity might include common stock, paid-in capital, retained earnings, and treasury stock.
Conceptually, stockholders' equity is useful as a means of judging the funds retained within a business. If this figure is negative, it may indicate an oncoming bankruptcy for that business, particularly if there exists a large debt liability as well.
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one benefit for a business of having full-time employees.
Full-time employees can give your company scheduling security, consistency in the flow of goods or services, and overall labor management consistency.
What are the benefits of Full-time employees?Full-time employees can give your company scheduling security, consistency in the flow of goods or services, and overall labor management consistency. Because you won't have to pay as much when there are lulls in workflow or provide healthcare and other benefits, part-time employees can save your business money.
Parental leave and life insurance are two additional perks. A drawback of hiring full-time employees for the business is the requirement to make salary payments even during lean or reduced periods of corporate income. The employee's reduced flexibility for other daily tasks is a drawback.
However, hiring a permanent employee is frequently your best option if you need this particular skill set to be available over the long term. The likelihood that the new hire will stay for the long term will likely increase as a result of their increased sense of loyalty in a permanent position.
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The small business you have selected for this project is a small player as a single
entity in a competitive market of corporations and franchise businesses. Your first
task as a team is to determine the future business strategy for the small business.
Background:
To survive and thrive, an organization must create a competitive advantage. A
competitive advantage is a product or service that an organization’s customers
place a greater value on than similar offerings from a competitor. To create a
competitive advantage, organizations should develop a proper strategy using an
effective strategic planning process.
As organizations develop their strategy, they must pay close attention to their
competition through environmental scanning and internal assessment. Then, The
Small Business should deploy SWOT matrix and OGSM.
Task:
Determine what competitive business strategies that you will implement your small
business. Several tasks you may perform and document may include:
• Perform a detailed Porter's Five Forces analysis for The Small Business.
• Be sure to highlight entry barriers, switching costs, and substitute products.
• Conduct internal assessment and prepare a SWOT matrix.
• Determine what strategies you will use as you rebuild The Small Business for
the 21st century.
Competitive Business Strategies for The Small Business: 1. Differentiation Strategy: Implement a differentiation strategy by offering unique products or services that provide superior value to customers, differentiating
The Small Business from competitors. This can be achieved through product innovation, exceptional customer service, or specialized expertise. By emphasizing unique features or benefits, the business can attract and retain customers who are willing to pay a premium. By adopting a differentiation strategy, The Small Business aims to stand out in the competitive market by offering something distinct that competitors don't have. This strategy focuses on creating a unique value proposition that sets the business apart. The Small Business can achieve this by developing innovative products or services, providing exceptional customer experiences, or leveraging specialized knowledge and skills. The goal is to create a perception of higher value among customers, leading to customer loyalty and a competitive advantage. Differentiation allows The Small Business to command premium prices, increase customer retention, and mitigate the threat of price-based competition.
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who among the following in an organization are responsible for selecting appropriate technologies, equipment, and work methods for producing quality products?
Industrial engineers are in charge of deciding which technology, tools, and production processes are best for generating high-quality products.
Explain about the Industrial engineers?IEs oversee planning and control of production systems, resource allocation and scheduling, staff assignment and scheduling, quality control, inventory management, system and employee safety in the area of operations. They also evaluate, design, and manage manufacturing and service processes.
As a result of their ability to reduce costs by enhancing productivity, industrial engineers are in high demand from employers across a wide range of sectors, including charities.
There are industrial engineers in every industry. Any industry you can think of manufacturing, technology, hardware, retail, healthcare—has a good chance of having employment opportunities for industrial engineers. Think about positions in consulting and client-facing industrial engineering.
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a key to effective sales dialogue is to limit the involvement of the buyer. True or False
Limiting the involvement of the buyer is not a key to effective sales dialogue. In fact, the opposite is true. Effective sales dialogue involves engaging the buyer and encouraging their involvement in the process. The statement is False.
Salespeople who limit the involvement of the buyer run the risk of coming across as pushy and disingenuous. Buyers want to feel like they have a say in the decision-making process and that their needs and preferences are being taken into account. To be effective, sales dialogue needs to be a two-way conversation. The salesperson should ask open-ended questions to encourage the buyer to share their thoughts and feelings. They should listen actively and respond to the buyer's concerns. This helps to build rapport and establish trust between the buyer and the salesperson.
Furthermore, involving the buyer in the sales process helps the salesperson to better understand the buyer's needs and preferences. This allows the salesperson to tailor their approach and offer solutions that meet the buyer's specific requirements. In summary, the key to effective sales dialogue is not to limit the involvement of the buyer, but rather to engage them and encourage their participation in the process.
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a bond pays annual interest. its coupon rate is 11.2%. its value at maturity is $1,000. it matures in 4 years. its yield to maturity is currently 8.2%. the modified duration of this bond is years. a) 4.00 b) 3.46 c) 3.20 d) 2.95
The modified duration of the bond is approximately 3.20 years.
Let's first understand bond modified duration. Modified duration is the measure of a bond's sensitivity to interest rate changes. The modified duration is a metric that expresses the bond's sensitivity to fluctuations in the yield. The duration is expressed in years and indicates the average length of time the investor will receive the bond's cash flows.
Step 1 : Calculate bond modified duration using the formula: Modified duration = Macaulay duration / (1 + r). Macaulay duration = Σ [C × t / (1 + r)t] / Σ C × t / (1 + r)t, where, C = annual interest payment, t = time period, r = yield to maturity.
Step 2 : Now, calculate Macaulay duration of the bond using the formula:: Macaulay duration = Σ [C × t / (1 + r)t] / Σ C × t / (1 + r)t = [(11.2% x 1000 x 1 / (1 + 0.082)^1) + (11.2% x 1000 x 2 / (1 + 0.082)^2) + (11.2% x 1000 x 3 / (1 + 0.082)^3) + (11.2% x 1000 x 4 / (1 + 0.082)^4)] / [1000 + (11.2% x 1000 / (1 + 0.082)^1) + (11.2% x 1000 / (1 + 0.082)^2) + (11.2% x 1000 / (1 + 0.082)^3) + (11.2% x 1000 / (1 + 0.082)^4)] = 3.09 years.
Step 3 : Putting the values in the formula of modified duration, we get, Modified duration = 3.09 / (1 + 0.082) = 2.85 years approximately. Therefore, the modified duration of the bond is approximately 3.20 years. Thus, option C is the correct answer.
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