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
Bas_tet [7]
1 year ago
9

suppose the real rate is 3.4 percent and the inflation rate is 5 percent. what rate would you expect to see on a treasury bill?

(do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Business
1 answer:
Ghella [55]1 year ago
7 0

the rate expected on the treasury bill is 8.57%. enter answer as a percent rounded to 2 decimal places.

The real rate is 2.1 percent

The inflation rate is 3.4 percent

To find the rate which is to be expected on a treasury bill we have to apply fisher's equation

1+R= (1+r)(1+h)

Therefore, the rate on the treasury bill can be calculated as follows

1+R= (1+r)(1+h)

r= 3.4%

= 3.4/100

= 0.034

h= 5%

= 5/100

= 0.05

R= (1+r)(1+h)-1

= (1+0.034)(1+0.05)-1

= (1.034×1.05)-1

= 1.0857-1

= 0.0857×100

= 8.57%

A Treasury invoice (T-invoice) is a brief-term debt obligation backed via the U.S. Treasury Department with an adulthood of one year or less. Treasury bills are generally bought in denominations of $1,000 even as a few can attain a denomination of $five million.

let's say an investor purchases a par price of $1,000 T-bill with an aggressive bid of $950. whilst the T-invoice matures, the investor is paid $1,000, thereby income $50 in interest on the funding.

U.S. Treasury bills are auctioned on a regular schedule. individuals should purchase T-payments from the government using the TreasuryDirect internet site. it is free to register, and it'll function like a brokerage account that holds your bonds. in addition to bidding on new troubles, You also can install reinvestments into securities of an equal type and time period. as instance, you can use the proceeds from a maturing fifty-two-week invoice to shopping for some other fifty-two-week invoice. sure brokerage corporations can also permit buying and selling in U.S. Treasuries.

To learn more about treasury bills visit here:

brainly.com/question/17204626

#SPJ4

You might be interested in
Select the statements that are true.
o-na [289]
<h2>The first three options are right</h2>

Explanation:

Exchange rate:

  • The "price  or value of one country's currency" is exchanged for the price of "another country's currency value".
  • The exchange rate always varies. It gets updated everyday.
  • Exchange rates are calculated based on the value of "interest rate, trade, inflation, growth rate, employment and geopolitical conditions".
  • There are two ways in which currency value is determined. A floating value is identified by the open market.
  • We must travel to another country when we need more exchange rates.

4 0
3 years ago
Accounting for manufacturing overhead. Creative Woodworking uses normal costing and allocates manufacturing overhead to jobs bas
VikaD [51]

Answer:

a) Budgeted manufacturing overhead rate =  budgeted overhead cost / budgeted labor hours

                                                                       = $ 4,140,000/ 180,000 hrs

                                                                       = $23 per hour.

b. JOURNAL ENTRY

Debit Work in process $4,347,000 Credit Manufacturing overhead $4,347,000

c. under or over applied = Actual overheads - applied

                                        = $4,337,000 - $4,347,000

              Over applied   = 10,000

yes the amount of over applied overheads is significant and material enough and it should be written off against cost of sales.

JOURNAL ENTRY

Debit Manufacturing overheads $10,000 , Credit Cost of sales $10,000

Explanation:

allocated manufacturing overheard = $23 * 189000 hrs = $4,347,000

4 0
3 years ago
Computing net income LO A1
Sergio [31]
Ummmm ... ok will not have any money and I can get a new phone I can do that and then you make me wanna play and I will go back on Monday if it’s a little bit of the above I
5 0
3 years ago
Smith operates a roof repair business. This year Smith's business generated cash receipts of $32,000 and Smith made the followin
rodikova [14]

Answer:

Net income = $20,940

Explanation:

Answer 1.

   

Accounts                                                                                                                

Cash Receipts                             32,000  

Expenses    

Advertising                    500    

Depreciation                 3,200    

Car & Truck Expense       1,360    

Employee Compensation  5,000    

Education                    1,000                          11,060  

Net Income                                               20,940  

   

Therefore, the net income that Smith should report from his business after considering all the cash receipts and all the expenditures associated with his business is $20,940. All the expenses are to be deducted from income.

6 0
3 years ago
A stock had returns of 18.58%, -5.58%, and 20.81% for the past three years. What is the variance of returns?
NemiM [27]

Answer:

Variance = 0.02141851

Explanation:

We first calculate the mean for the stocks

Mean = (0.1858 - 0.0558 + 0.2081) / 3

Mean = 0.3381 / 3

Mean = 0.1127

Variance = [(0.1858 - 0.1127)^2 + (- 0.0558 - 0.1127)^2 + (0.2081 - 0.1127)^2] / 3 -1

Variance = [0.0731^2 + (-0.1685^2) + 0.0954^2] / 2

Variance = 0.00534361 + 0.02839225 + 0.00910116 / 2

Variance = 0.04283702 / 2

Variance = 0.02141851

The variance of returns is 0.02141851

7 0
2 years ago
Other questions:
  • Franklin Co. had 10 units of an inventory item on hand at the beginning of the current year, each of which had a per-unit cost o
    9·1 answer
  • A lower interest rate increases consumption, investment, and __________, which ___________ aggregate demand.
    9·1 answer
  • 1. Organize around outcomes, not tasks. 2. Identify all the organization’s processes and prioritize them in order of redesign ur
    6·1 answer
  • What is the primary reason why securities are sometimes offered through a rights offering? To avoid corporate taxation of excess
    15·1 answer
  • Regarding convergence of accounting standards, the FASB and IASB:
    8·1 answer
  • How do adjustments affect financial results? (You may select more than one answer. Single click the box with the question mark t
    13·1 answer
  • Samsung innovations have proven to be successful supported by statistical data.
    6·1 answer
  • Building, maintaining and strengthening beneficial relationships with suppliers and customers is accomplished through the use of
    12·1 answer
  • What are three characteristics that affect decision making by a group?
    9·1 answer
  • tonya explained to the management team that it was vital that the company deliver the right product to the right place at the ri
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!