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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:

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Mark runs a small manufacturing business. Which statement hints at the fact that Mark is a transformational leader?
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The answer would be A because the key word is manufacturing and that means Mark is building something he visioned. So, the business he started although small inspired enough people to work for what he envision. B, C, and D are wrong because it does not hint or say in the question about any of those answer choices.
3 0
3 years ago
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Which statement is false about liquidity?
BARSIC [14]

Answer:

Option D. Both A and B

Explanation:

The reason is that the investment that are readily convertible to cash are less risk and as a result the investors are compensated with lower returns and vice versa. So the only statement that is not false statement is option C and the statement A and B are False.

8 0
3 years ago
At a price of $60 per bathing suit, what is the quantity demanded of bathing suits?
timofeeve [1]

Answer:

Explanation:

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The quantity demanded is 30 units when the price is 60, we use the reconciliation method on the demand line.

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3 years ago
wist Corp. has a current accounts receivable balance of $330,800. Credit sales for the year just ended were $3,804,200. a. What
Alex17521 [72]

Answer:

Receivables turnover = 11.50 times

Days' sales in receivables = 31.74 days

Average collection period = 31.74 days

Explanation:

<u>Receivables Turnover Ratio</u>

Receivables turnover = Credit Sales / Receivables

                                    = $3,804,200 / $330,800

                                     = 11.50 times

Receivables turnover ratio measures how many times a company's receivables are converted to cash in a period. A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and that the company has a high proportion of quality customers that pay their debts quickly.

<u>Days' sales in Receivables/ Average Collection Period</u>

Days' sales in receivables = 365 days / Receivables turnover

                                            = 365 / 11.50

                                            = 31.74 days

On average, credit customers took 31.74 days to pay off their accounts.

The days' sales in receivable ratio which is also known as the average collection period tells you the number of days it took on average to collect the company's accounts receivable during the past year.

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This text appears and a Canamak's page of the local newspaper.One of the sentences is incorrect. Which corrected sentence would
Mama L [17]
Answer: option C.

It corrects the error in the original because when business seek to reduce cost  cut positions not the contrary. The employment goes down which is the same that unemployment goes up.
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