Answer:
Identify the dependent variable as either increasing, decreasing, or unchanged as the independent variable increases and is possible to have no relationship shown on the graph.
There is 7 ounces of flour in the container <span />
Maturity risk for 3 year Treasury security is 0.1%
<u>Explanation:</u>
Given -
Rate of 3 year Treasury security, R3 = 7%
Rate of 6 year Treasury security, R6 = 6.2%
Rate of inflation, Ri = 2.25% next year, 2.5% on 2nd year, 2.5% on 3rd year
Real interest rate, Rint = 4.4%
Maturity risk on 3 year Treasury security, x = ?
Maturity risk for 3 year Treasury security:
R3 = Ri on 3rd year + Rint + x
7% = 2.5% + 4.4% + x
x = 0.1%
Therefore, Maturity risk for 3 year Treasury security is 0.1%
