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
Mazyrski [523]
3 years ago
6

Suppose that the yield curve shows that the one year bond yield is 3 percent, the two year bond is 4 percent, and the three year

yield is 5 percent. Assume that the risk premium on the year bond is zero, the risk premium on the two year bond is 1 percent, and the risk premium on the three year bond is 2 percent.
a) What are the expected one year interest rates next year and the following year?

b) If the risk premiums were all zero, as in the expectations hypothesis, what would the slope of the yield curve be?

Business
1 answer:
Andreyy893 years ago
7 0

Answer: (a) i2 = 3% i3 = 3%

(b) Downward slope

Explanation:

You might be interested in
What are the three basic questions faced by every economy
Likurg_2 [28]

The three basic questions asked are:

1. What goods and services should be produced?

This is asked because the economy wants to produce what the consumers want or else the resources aren't being used efficiently since resources are scarce.

2. How should we produce them?

This is asked because the producers don't want to spend unnecessary time or money on production, so they must choose wisely what method of production is best for their company and consumers.

3. Who are the consumers?

This is asked because the producers want to make sure that they are targeting the right people with advertising or selling.

Hope this helped!

~Just a girl in love with Shawn Mendes

5 0
3 years ago
Read 2 more answers
A company has beginning inventory for the year of $10,500. During the year, the company purchases inventory for $160,000 and end
djverab [1.8K]

Answer:

The correct answer is $147,500.

Explanation:

According to the scenario, the given data are as follows:

Beginning inventory = $10,500

Purchase inventory = $160,000

Ending inventory = $23,000

So, we can calculate the cost of goods sold by using following method:

Cost of goods sold = Beginning inventory + Purchase inventory - Ending Inventory

By putting the value, we get,

Cost of goods sold = $10,500 + $160,000 - $23,000

= $147,500

4 0
4 years ago
how do polling firms respond to the difficulties of obtaining a body of respondents that truly reflects the population at large?
SSSSS [86.1K]

By weighing the responses of diverse groups, polling companies attempt to overcome the challenges of assembling a sample of respondents that accurately reflects the entire population.

<h3>What is a survey research ?</h3>

The definition of survey research is "the gathering of data from a sample of people through their responses to questions". A variety of techniques can be used to find participants, gather data, and instrument the study in this type of research. Both quantitative and qualitative research methods can be applied to surveys.

Historically, large-scale population-based data gathering has been a component of survey research. This kind of survey research's main goal was to quickly gather information on the features of a wide sample of interesting people. Consumer feedback surveys and large census surveys that gather data on demographic and personal characteristics are two prominent examples. These questionnaires, which were frequently mailed out, were designed to gather information for programs or products aimed at a specific population or group or to describe the demographic characteristics of individuals.

To know more about survey research, visit :

brainly.com/question/16255150

#SPJ4

The complete question is mentioned below :

Polling firms respond to the difficulties of obtaining a body of respondents that truly reflects the population at large by:

a. sampling the responses of the target group.

b. weighting the responses of various groups.

c. randomly selecting the best responses.

d. counting the number of positive responses.

e. counting the number of negative responses.

8 0
1 year ago
Which is the simplest option that sole proprietors can use to post an advertisement about the sale of their small businesses?
Natalka [10]

Business Classifieds Section which has advertisements and announcements about local businesses.

4 0
3 years ago
Read 2 more answers
Using monetary policy, the Federal Reserve increases to reduce the money supply in the economy.
Blababa [14]

Answer:

Reserve Ratio

Explanation:

Using monetary policy, the Federal Reserve increases Reserve Ratio to reduce the money supply in the economy.

The reserve ratio determines the reserve amounts required, by the Federal Reserve, to be held in cash by banks. This money is kept aside by the bank and is not available to be loaned out to the general public. If the Reserve Ratio is increased, more money will be held in reserves hence a reduction in the money supply in the economy.

6 0
3 years ago
Read 2 more answers
Other questions:
  • When you ask questions about the animal's drinking habits, particularly increases and decreases in water consumption, you're col
    5·1 answer
  • Lots of writers have written good stuff other than books, like stuff for movies. which is the best way to revise the sentence to
    8·1 answer
  • The purchase of U.S. goods and services by foreigners A. requires the purchase of dollar-denominated bonds. B. increases the dem
    8·1 answer
  • Drag each label to the correct location on the table. Match the examples to the types of assets they represent.
    6·1 answer
  • Soft skills are essential career attributes that include communicating effectively, solving problems, making ethical decisions,
    5·2 answers
  • Define agency costs, and describe agency costs of financial distress and agency benefits of leverage
    5·1 answer
  • Tonto Company purchased property for $125,000. The property included a building, equipment and land. The building was appraised
    12·1 answer
  • Marigold Corp. gathered the following reconciling information in preparing its April bank reconciliation: Cash balance per books
    12·1 answer
  • Which of the following is a function of the Federal Reserve System Board of Governors?
    7·1 answer
  • A firm has a return on equity of 20 percent. The total asset turnover is 2.8 and the profit margin is 7 percent. The total equit
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!