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ICE Princess25 [194]
3 years ago
7

5-year Treasury bonds yield 5.5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4

%. What is the real risk-free rate, r*? 3.87% 3.52% 3.20% 2.88% 2.59%
Business
1 answer:
tangare [24]3 years ago
7 0

Answer:

option 3.20%

Explanation:

0.055-0.019-0.004 =0.032 = 3.20%

The inflation premium is added to the real risk-free rate as well to the maturity risk premium

A no risk rate would be 3.2

because there is a certain change for inflation a premium is added, also another premium is added to prevent investor to purchase the bond on a lower price.

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zloy xaker [14]

The answer is D:both A and B

5 0
3 years ago
Chief among the factors playing a part in determining an organization's structure are _______.
denis-greek [22]
Size of the organization, business model, nature of business and location are key factors in determining an organization's structure.
3 0
2 years ago
Lily wants to build a business. She has very little capital. She does, however, have a partner with which she could run a busine
Sati [7]

Answer:

The correct answer is option (b) Little capital

Explanation:

Solution

With a little capital this will help Lily to choose a sole proprietorship organization for her business. a sole proprietorship can begin with a little capital.

The option (a) is not correct as possession of a partner will not lead her to start a sole proprietorship business.

Also the option (c) is not correct the avoidance of personal liability is not the reason because in sole proprietorship, Lily will be liable for her debts.

4 0
2 years ago
If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ t
GuDViN [60]

Answer:

greater; higher than

Explanation:

Here is the complete question

If the supply of aisle seats equals the supply of middle seats on an airplane, and the demand for aisle seats is _____________ than the demand for middle seats, then the equilibrium price of aisle seats will be ______________ the equilibrium price of middle seats

.a. greater; higher than

b. less; higher than

c. greater; lower than

d. less; the same as

Equilibrium price is the price at which quantity demand equal quantity supplied. Above equilibrium price there is a surplus - quantity supplied exceeds quantity demanded.

Below equilibrium price there is a shortage - quantity demanded exceeds quantity supplied

If the demand for aisle seats exceeds the demand for middle seats, it means that equilibrium price for aisle seat would exceed equilibrium price

3 0
3 years ago
A multinational strategy entails having a separate strategy for each nation in which a company markets its products
Studentka2010 [4]
This statement above would be known to be called a (true/false) question, and based on my information, this statement above would be known to be a "true" statement. This would be true in many marketing companies that would be out there. They would always contain a strategy for each nation, and therefore this would then resolve to which a company would produce it's market productions.

Your answer: True
4 0
2 years ago
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