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lukranit [14]
3 years ago
9

Suppose 2-year treasury bonds yield 4.5%, while 1-year bonds yield 3%. r* is 1%, and the maturity risk premium is zero. using th

e expectations theory, what is the yield on a 1-year bond 1 year from now? calculate the yield using a geometric average.
Business
1 answer:
Gemiola [76]3 years ago
5 0
<span>The expectation theory assumes that the yield curve accurately reflects the expected value of interest rates. b. Inflation is 4.5%-3%=1.5%-1%=0.5% in year one. Year two would be 1.5%.</span>
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The benefits of a strategic business plan do not include _____.:
djyliett [7]

Answer:

Early precautionary measures of trouble ahead can not be issued.

Explanation:

Since a strategic strategy maps out a path for the organisation to follow, it will enable it tighten its attention in order to get somewhere. Therefore, strategic preparation will help the organisation create the best priorities and strategies and help others concentrate their energies on achieving them.

8 0
3 years ago
The college majors that lead to the highest median earnings for both men and women tend to be those that
Burka [1]
Question 30.... are more quantitative and analytical. 
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4 0
3 years ago
Phipps Company borrowed $25,000 cash on October 1, 2016, and signed a nine-month, 8% interest-bearing note payable with interest
anzhelika [568]

Answer:

The correct option is C,$500

Explanation:

The amount of interest accrual is the interest on the sum borrowed from October 1 2016 to 31 December 2016,that is 3 months of interest,which is computed below:

Accrued interest =principal*stated interest rate*number of accrued months/12

principal is $25,000

stated interest is 8%

number of accrued months is 3

accrued interest =$25,000*8%*3/12=$500

The accrued interest is to be debited interest expense  because it is an increase in expense  and credited to interest payable as a liability

5 0
3 years ago
"You found out that now you are going to receive payments of $8,500 for the next 16 years. You will receive these payments at th
Paraphin [41]

Answer:

Present value= $62,722.875≈ $62,723

Explanation:

To calculate present value use this formula

Present value= Yearly payment*{[1-(1+rate)^-period]/rate}

Present value= 8,500*{[1-(1+0.11)^-16]/0.11}

Present value= 8,500* {0.8117/0.11}

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5 0
3 years ago
Cabell Products is a division of a major corporation. Last year the division had total sales of $25,320,000, net operating incom
Pie

Answer:

ROI = Net operating income        x 100

         Average operating assets

ROI = $1,924,320   x 100

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ROI = 32.1%

The correct answer is C

Explanation:

ROI is the ratio of net operating income to average operating assets multiplied by 100.

7 0
3 years ago
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