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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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Carlotta Rodriguez purchased six bushes for $19.27 each, a porch swing for $88.22, and a gas grill for $321.77. She must pay the
puteri [66]
19.27+88.22+321.77=429.26

4.5+2=6.5

429.26 x 1.065 = 457.1619

Answer = $457.16
5 0
3 years ago
Read 2 more answers
A fixed asset with a five-year estimated useful life and no scrap value is sold at the end of the second year of its useful life
JulsSmile [24]

Answer:

B) A gain would be less or a loss would be greater using straight-line depreciation.

Explanation:

In straight line method of depreciation there is a fixed amount of depreciation,  and in double declining method the rate is double of straight line method,

Let us take an example,

Cost of asset = $500,000

Selling price at end of 2nd year = $300,000

Straight line depreciation = $100,000 for each year i.e. $500,000/5

Double declining method rate = ($100,000/$500,000) \times 100 \times 2 = 40%

Therefore value at end of second year

Straight line = $500,000 - ($100,000 \times 2 ) = $300,000

Double Declining method = ($500,000 -40%) - 40% = $180,000

In case of sale at $300,000

Profit shall be

Straight line = $300,000 - $300,000 = 0

Double Declining = $300,000 - $180,000 = $120,000

Now, there will be more profit in double declining that is gain is less in straight line and losses would be greater in straight line thus statement B is correct.

8 0
3 years ago
Which best ranks Agriculture, Food, and Natural Resources careers from highest to lowest required degree? Veterinarian → Nursery
pshichka [43]

Answer

Food is what we get from agriculture.

To rank the given option from the highest to lowest degree of importance, we need to do a little research on the each of the individual subjects.

these can be arranged in the following order.

(1) Food

(2) agriculture

(3) natural resources careers.

5 0
3 years ago
Read 2 more answers
A newly established company, The Malt Company, wishes to enter the beer market in Country A by building a new brewery there. Man
Alina [70]

Answer: barriers to entry

Explanation:

Barriers to entry are also known as economic barrier to entry. They are hindrances which makes entering a particular market difficult by new entrant.

Barrier to entry are fixed cost that must be incur by a new company irrespective of their sales or production level, this cost are incur by new entrant which those who have been in the industry before do not have to incur.

Few common barriers to entry includes technology, government regulation and policy, economies of scale, etc.

4 0
3 years ago
Clay Corporation manufactures two styles of lampslong dasha Bedford Lamp and a Lowell Lamp. The following per unit data are​ ava
mote1985 [20]

Answer:

$ 10

Explanation:

Given:

For Bedford lamp

Sales price = $ 26

Variable cost = $ 16

Machine hours required per unit = 1

Now,

the contribution margin per unit = Sales price - Variable cost

= $ 26 - $ 16

= $ 10

therefore,

the contribution margin per machine hour is calculated as:

= contribution margin / machine hours

or

= $ 10 / 1

or

= $ 10

hence,

the contribution margin per machine hour for the bedford lamp is $ 10

4 0
3 years ago
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