Answer: 9.04%
Explanation:
1 year rate today = 5% = 0.05
2 years rate today = 7% = 0.07
Maturity of longer bond = 2
The ending return if the 2 years bond are bought will be thesame as the needed return on series of a year bond which will be 1.1449
The market's forecast for 1-year rates 1 year from now will be calculated as:
= 1.05(1+X) = 1.1449
1.05 + 1.05X = 1.1449
1.05X = 1.1449 - 1.05
1.05X = 0.0949
X = 0.0949/1.05
X = 0.090381
X = 9.04%
Answer:
correct answer is c. You both have the same amount of money
Explanation:
given data
invest = $1000
pay compound interest = 10%
pay simple interest = 10%
time = 1 year
solution
we get here difference in the total amount that is your friend money - your money .................1
so difference in the total amount = invest ×
- [ invest + ( invest × rate × time) ] ......................2
put here value
difference in the total amount = $1000 ×
- [$1000 + ( 1000 × 10% × 1) ]
difference in the total amount = 0
so correct answer is c. You both have the same amount of money
Answer:
The correct answer is C. This claim is most likely based on the right to substantive due process.
Explanation:
Substantive due process is a means by which the government's ability to interfere with the fundamental rights of individuals is limited. In this case, the fundamental right violated is that of freedom of expression, guaranteed by the First Amendment. Thus, since it is a right with constitutional protection, the government cannot curtail its operation without the due legal process necessary for this purpose.