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FromTheMoon [43]
3 years ago
14

The current one-year T-bill rate is .33 percent and the expected one-year rate 12 months from now is 1.30 percent. According to

the unbiased expectations theory, what should be the current rate for a two-year Treasury security? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))
Business
1 answer:
Digiron [165]3 years ago
8 0

Answer:

According to the unbiased expectations theory, the current rate for a two-year treasury security should be 0.98%.

Explanation:

Unbiased Expectations Theory help us predict future short-term interest rate by using current long-term interest rates.

T-bill rate = 0.33%

Expected one-year rate 12 months from now = 1.30%

1R2= [(1 + 0.0033)(1 + 0.013)]^{\frac{1}{2}}− 1

= 1.0098 - 1 = 0.98%

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The popularity of social media sometimes leads to a new stage in the hierarchy of effects known as advocacy where loyal consumers recommend brands they have adopted.

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The popularity of social media sometimes leads to a new stage in the hierarchy of effects known as ________ where loyal consumers recommend brands they have adopted.

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Advocacy is the activity of individuals or groups aimed at influencing decisions within political, economic, and social institutions. Advocacy Her group, for example, is a non-profit organization dedicated to helping women who have been victims of domestic violence and are afraid to speak up for themselves.

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4 0
1 year ago
According to the ________ argument, governments should temporarily support new industries until they have grown strong enough to
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The right answer is "Infant industry".

Explanation:

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3 years ago
On July 1, Dichter Company obtained a $2,000,000, 180-day bank loan at an annual rate of 12%. The loan agreement requires Dichte
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Answer: 12.67%

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3 years ago
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Answer:

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