1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Juliette [100K]
2 years ago
12

a 2-year treasury security currently earns 6.75 percent. over the next two years,the real interest rate is expected to be 3.18 p

ercent per year and the inflation premium is expected to be 2.18 percent per year and the inflation premium is expected to be 2.18 percent per year. What is the maturity risk premium on the 2-year Treasury security? A 1.00% B.1.35% C.1.39% D.5.36
Business
1 answer:
Anna35 [415]2 years ago
3 0

The maturity risk premium on the 2-year Treasury security is C. 1.39%

Using this formula

rd = r* + IP + MRP

Where

rd represent Required rate of return on 2-year Treasury Security = 6 75%

r* represent real risk free return = 3.18%

IP represent Inflation Premium = 2.18%

MRP represent Maturity Risk Premium

Let plug in the formula

6.75% = 3.18% + 2.18% + MPR

6.75%=5.36%

MRP=6.75% -5.36%

MRP = 1.39%

Inconclusion the maturity risk premium on the 2-year Treasury security is C. 1.39%.

Learn more here:

brainly.com/question/15314847

You might be interested in
Sanjay is a manager at Ridgeway Appliance Corp. and is responsible for helping the company reach its goal of purchasing a manufa
xeze [42]

Answer:

effectiveness

Explanation:

<em>Effectiveness </em>is the essential pillar of business management. Commonly mistaken for efficacy, it isn't quite the same thing. Effectiveness is doing the right thing that helps achieve business goals, while efficacy is how the practice is performed, rationally using available resources. Since the example emphasizes Sanjay's plan that will help the company reach business goals, it is an effectiveness example.

3 0
3 years ago
"Uterine family" is the phrase Margery Wolf uses to describe the family a woman makes by having children though they are not off
AlekseyPX

Answer:

a. True

Explanation:

The uterine family represents the individual mother and mother children. in other way, it is you, your mother, your siblings, etc

The Uterine family implies the family description that shows the women have the children but they are not officially recorded as a members of the similar lineage

Therefore the given statement is true

3 0
3 years ago
When a pharmaceutical company discovers a new drug, patent law gives it market power by guaranteeing:
Roman55 [17]

C) exclusive ownership of the drug's right to sell it for a limited time.

What guarantees the monopoly when a pharmaceutical company discovers a new drug?

A company without market power is a monopoly. Patent law grants a pharmaceutical company a monopoly when they discover a new drug: the right to sell the drug in part for an unlimited number of years.

What is monopoly power's fundamental source?

Barriers to entry are the primary factor that lead to monopoly. There are three sources of entry barriers: Responsibility for secret weapon.

Is a patent monopoly-granting?

Invention is rewarded by patents, not commercialization. In a similar vein, a patent does not constitute an economic monopoly. First, because having a patent does not result in the "single supplier" situation that is typical of most monopolies in real life.

To learn more about monopoly here

brainly.com/question/29765560

#SPJ4

5 0
1 year ago
Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by?
Marina86 [1]

Assuming a firm is selling its output in a purely competitive market, its resource demand curve can be determined by Multiplying marginal product by product price.

A competitive marketplace is a term in economics that refers to a market in which there are a large quantity of customers and sellers and no single customer or seller can have an effect on the marketplace. competitive markets haven't any limitations to entry, plenty of consumers and sellers, and homogeneous products.

Summary. The version to take a look at supply and call for is known as the competitive market version. within the aggressive marketplace, we assume products are homogeneous, and there may be no supplier or purchaser energy.

A free market is a market that has restrained government involvement. marketplace systems can normally be divided into four types. a wonderfully competitive market is one wherein there are a big number of small firms promoting identical products.

Learn more about the competitive market, here:

brainly.com/question/25717627

#SPJ4

5 0
2 years ago
Park uses a perpetual inventory system. Determine the cost assigned to ending inventory and to cost of goods
DIA [1.3K]

Answer:

below

Explanation:

3 0
3 years ago
Other questions:
  • Combs Co. is planning to sell 400 hair dryers and produce 380 hair dryers during March. Combs uses 500 grams of plastic and one-
    6·1 answer
  • Question 1
    15·2 answers
  • Which person is credited with introducing the concept of supply and demand?
    7·1 answer
  • Identify which of the following statements is true. A. A corporation that accrues compensation payable to an employee must pay t
    6·1 answer
  • Which of the following accurately describes a capital gain
    7·2 answers
  • You are considering in investing one of the two options: Investment A requires a $255,000 upfront payment from you and generates
    8·1 answer
  • Student loans, car loans, and housing loans are good examples of
    6·1 answer
  • -WILL GIVE BRAINLIEST-
    15·1 answer
  • Identify what is needed to calculate the P/E ratio. (Check all that apply.) Multiple select question. Return on equity Average s
    7·1 answer
  • which statement provides the best advice about instant messaging and texting on the job? a. maintain one contact list for both p
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!