I think this is specific to your class or we need a bit more context!
Answer:
7.5430%
Explanation:
Treasury securities are the governmental bills, notes, and bonds.
Yield is the amount you earn by holding on to these treasury securities.
Given yield on 1-year Treasury security = 5.38% = 0.0538
and
yield on 2 year Treasury security = 6.456% = 0.06456
THe formula to use would be:
Where
is the yield of 2 year security (here, n = 2)
and
is the yield of 1 year security ( here, n = 1)
Now, substituting, we get:
<u>Converting this to percentage:</u>
0.075430 * 100 = 7.5430%
Answer:
Are ups and downs in the level of economic activity
Explanation:
Business cycles is defined as the various ups and downs in the economic activities of a particular nations. These ups and downs are generally measured by the fluctuations in the macro economic variables. These macro economic variables includes:
(i) Gross domestic product (GDP)
(ii) Employment
(iii) Rate of consumption
There are four major phases in the process of business cycle are as follows:
(i) Expansion
(ii) Peak
(iii) Contraction
(iv) Trough
Answer:
The price of the stock today or the price at which the stock should sell today is $61.30
Explanation:
The price of the stock today can be calculated using the Dividend Discount Model approach which values a stock based on the present value of the expected future dividends from the stock. The price of this stock will be,
P0 = 3.15 * (1+0.2) / (1+0.12) + 3.15 * (1+0.2) * (1+0.15) / (1+0.12)^2 +
3.15 * (1+0.2) * (1+0.15) * (1+0.1) / (1+0.12)^3 +
[(3.15 * (1+0.2) * (1+0.15) * (1+0.1) * (1+0.05) / (0.12 - 0.05)) / (1+0.12)^3]
P0 = $61.296 rounded off to $61.30
Belief that what works best at home should work everywhere else<span />
