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Pachacha [2.7K]
3 years ago
5

Three-year Treasury securities currently yield 6%, while 4-year Treasury securities currently yield 6.5%. Assume that the expect

ations theory holds. What does the market believe the rate will be on 1-year Treasury securities three years from now
Business
1 answer:
Reptile [31]3 years ago
4 0

Answer:

The correct answer is 8%.

Explanation:

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

Let 1 year Treasury securities = t

So, Four year Treasury = [(Yield of 3 years Treasury × No. of year) + ( t × No. of  year)] ÷ Number of year

So, by putting the value, we get

6.5% = [(6% × 3) + ( t × 1)] ÷ 4

[(6% × 3) + t] = 6.5% ×4

t = 8%

So, the rate on 1-year Treasury securities three years from now is 8%.

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The correct answer is $380 per unit.

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A sales forecast is an indication of predicted sales revenue. What your business expects to sell during a specific time period is estimated by a sales forecast (like a quarter or year). The most accurate sales projections do this. By providing knowledge of the probable behavior of your most valued clients, sales forecasting aids in achieving this revenue efficiency. In addition to enhancing pricing, advertising, and product development, you may forecast future sales. The ability of your business to predict future revenues across particular time periods in order to better manage resources is one of the benefits of sales forecasting.

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1 year ago
Question help what is the definition of​ monopoly?
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Monopoly is a seller<span> that is selling a unique product in the market and in a </span>monopoly<span> market, the seller faces no competition. </span>
A firm that is a monopoly can ignore the actions of other firms. From the given option the following best describes monopoly:
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3 years ago
Under the principles of agency law, any sale of goods by a salesperson in a store to a customer can be binding on the owner of t
NeX [460]

Answer: True

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Under Agency Law in relation to employment, the salesperson is acting as an agent of the owner of the store and as such is their representative. As their representative, it is assumed that whatever they are selling is from the Owner whom they represent and as such can be binding on the owner.

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