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Margarita [4]
3 years ago
13

You observe the 12-month and 18-month zero coupon rates for U.S. Treasury securities are 1.95% and 2.25%, respectively. Assuming

arbitrage free markets and no friction costs, the implied 6-month rate in 12 months’ time should be closest to:
Business
1 answer:
borishaifa [10]3 years ago
6 0

Answer:

semiannual 1.42%

yearly          2.85%

Explanation:

Those are annual rate so we need to determinate the 6-month rate

The annual rate times the semiannual rate will be equal to the 18 months rate

(1+0.0195)(1+r)=(1.0225)^{3/2}

\frac{1.0225^{3/2} }{1.0195} - 1 = r

r = 0.01416296  = 1.42%

If we want to express it annually:

1.0142^2 - 1 = r  = 2.85%

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An investment property with 10 residential units rents for $2,000 per unit per month. The rate of vacancy and collection loss is
irinina [24]

Answer:

$1,815,000

Explanation:

First we must determine the gross income = $2,000 x 10 units x 12 months = $240,000

minus the vacancy rate = $240,000 x 5% = $12,000

minus the annual expense = $10,200

net income = $240,000 - $12,000 - $10,200 = $217,800

to calculate the maximum amount that the investor should pay we must divide the net income by the expected rate of return = $217,800 / 12% = $1,815,000

When you are calculating a project's price (buying this asset is an investment project), depreciation and debt service are not included in the calculations.  

5 0
3 years ago
Which statement best describes the variety of workplaces commonly found in the Health Science career cluster? A. Workplaces in t
Mars2501 [29]

People who work in Health Science career clusters can expect a career that deals with promoting health to treating diseases. Some examples of professions in this cluster include dietitians, neurologists, and biomedical engineers. With a wide variety of professions that are included in this cluster, the workplaces where these individuals can work are also equally as diverse.

Thus, the best answer for the question is (C) workplaces in this cluster include nonprofit hospitals, government-run clinics, and private physicians' offices.

8 0
3 years ago
Read 2 more answers
the government believes that the equilibrium price is too low and tries to help almond growers by settinga price floor at Pf. Wh
musickatia [10]

Answer: D) B

Explanation:

The Producer Surplus refers to the area below the Price Floor but above the Supply Curve and left of the new Quantity supplied. It comprises of areas B and E.

Before the Price Floor was introduced, area A, B and C were the Consumer Surplus as they were above the price but below the Demand Curve.

After the Price Floor was introduced however, area B has become a Producer Surplus.

7 0
3 years ago
General Widget partnership assets amount to $34,000 after liquidation. Frank, Gene, and Hank, equal partners, each contributed $
maks197457 [2]

Answer:

$7,000

Explanation:

Balance to be distributed = Assets amount after liquidation - Creditor - Gene loan to the business

Therefore,

Balance to be distributed = $34,000 - $23,000 - $5,000 = $6,000

Since there is no agreement among the partners regarding the distribution of profits, the amount to be distributed will be shared equally for each partners as follows:

Each partner's of the amount to be distributed = $6,000/3 = $2,000

Amount received by Gene = Loan amount from + Distributed balance share

                                             = $5,000 + $2,000

Amount received by Gene = $7,000

Therefore, Gene gets $7,000 in distribution.

8 0
3 years ago
If the government uses tax money to pay for long-term investments such as roads or other infrastructure, what happens to the eco
coldgirl [10]

Is this a theory type of question?

If it is and if it took place under president Calvin Coolidge then taxes likely would have gone up.

If you are talking about now, then investment might go up but in order to pay for it, the government will just print more money, so that taxes shouldn't go up.

I'd pick C.

4 0
3 years ago
Read 2 more answers
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