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Margarita [4]
4 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]4 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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PLZ HELP ASAP FOR ECON !!!
Alja [10]

Answer:

it decreased

Explanation:

the graph shows that the line went down therefore showing it decreased

3 0
3 years ago
Cobe Company has already manufactured 17,000 units of Product A at a cost of $20 per unit. The 17,000 units can be sold at this
AlexFokin [52]

Answer:

differential analysis:

                         No further process      Process further         Differential

                                                                                                 amount

Sales revenue            $410,000                $1,213,400             $803,400

Production costs     ($340,000)               ($580,000)           ($240,000)

Operating income       $70,000                  $633,400            $563,400

The company should process further and sell products B and C because its operating income will increase by $563,400.

6 0
3 years ago
Maya opened a bakery in a seaside resort town. She was positive she had the perfect location as plenty of hotels and inns were w
Ksivusya [100]

Answer:

B) underestimated the competition.

Explanation:

Maya is trying to pursue a dream of having her own bakery in a vibrant seaside resort town and thought that by using her grandmother's recipes, her business would be a success. But in order for a business to be successful, it takes more than just a great product (or great cookies, muffins, etc.).

The first thing you need to do is analyze the external environment and what other products are offered by your competition. That way you will be able to determine the opportunities or threats to you new venture. E.g. since the town hosts several upscale and expensive resorts, the clients are wealthy and that market attracts good chefs. I'm not sure if they hand out Michelin stars to bakeries, but if you have very good products offered by your competition, then you must work twice as hard.

8 0
3 years ago
Cool Beans is a locally owned coffeeshop that competes with two large coffee chains, PlanetEuro and Frothies. Alicia, the owner,
erma4kov [3.2K]

Answer:

0.9717 per unit sold (approx)

Explanation:

Here, we are assuming 52 weeks in a year.

Contribution margin:

= (Sales revenue - variable cost) ÷ sales revenue

= [(3.52 × 10 + 3.52 × 0.18 × 540 × 52) - (3.52 × 0.26 × 551)] ÷ (3.52 × 10 + 3.52 × 0.18 × 540 × 52)

=  [(35.2 + 17,791) - (504)] ÷ (35.2 + 17,791)

= [17,826.2 - 504] ÷ 17,826.2

= 17,322.2 ÷ 17,826.2

= $0.9717 per unit sold (approx)

5 0
3 years ago
An amortized loan: Multiple Choice requires the principal amount to be repaid in even increments over the life of the loan. may
babymother [125]

Answer:

The correct answer is: may have equal or increasing amounts applied to the principal from each loan payment.

Explanation:

Amortization can be defined as the process of spreading out the loan in monthly payments. An amortized loan has scheduled periodic payments for both interests as well as principal. If the payments for each period are equal it is called a fully amortized loan.

In amortized loans the interest is paid off first then the amount excess of interest reduces the principal. A common example of amortized loans is auto loans, home loans.

The payments for amortized loans can be equal or unequal for each period.

7 0
3 years ago
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