What Is the Duration of an 8 Percent Annual Payment

question 19

Multiple Choice

What is the duration of an 8 percent annual payment two-year note that currently sells at par?

• A)2 years.
• B)1.75 years.
• C)1.93 years.
• D)1.5 years.
• E)1.97 years.

Grasp the concept and necessity of adjusting entries in the preparation of accurate financial statements.

Gain knowledge of the use of worksheets in the accounting process for preparing financial statements and adjusting entries.

Understand how to calculate and interpret the effects of accounting adjustments on the adjusted trial balance and financial statements.

Understand the types of funds used in governmental accounting and their purposes.

---

Definitions:

Mood

A temporary state of mind or feeling that can vary from happiness to sadness, which affects a person's emotional state but is less intense than emotions.

Cognitive Arousal Theory

A theory suggesting that arousal in the cognitive system can affect emotions and motivation.

Emotion

A complex psychological state involving an experiential, behavioral, and physiological response to a situation or stimulus.

Afraid

A feeling of fear or anxiety about a possible or imminent event or situation.