Answer:
The yield on a 7-year Treasury note is 5.11%.
Explanation:
Given
Real risk-free rate = r* = 2.05%. Inflation Rate = 3.05% this year, 4.75% next year, and 2.3% thereafter.
Time = 7 years
Maturity risk premium, MRP = 0.05(t- 1)%
First, we'll calculate the average inflation rate for the next 7 years.
This is given by:
((3.05% * 1) + (4.75% * 1) + (2.3% * (7-2)))/7
This is so, because the Inflation Rate is 3.05% this year (1 year), 4.75% next year (1 year), and 2.3% thereafter (7-2=5 years).
So, we have
(3.05% + 4.75% + 11.5%)/7
= 19.3%/7
= 2.757142857142857%
= 2.76%
So, IP7 = 2.76%
The yield on a 7-year Treasury note is calculated by
r* + IP7 + MRP
Yield = 2.05% + 2.76% + 0.05(t- 1)% where t = 7
Yield = 4.81% + 0.05(7-1)%
Yield = 4.81% + 0.05*6%
Yield = 4.81% + 0.3%
Yield = 5.11%
Answer:
c) Current liabilities, $450,000; Long-term Debt, $1,350,000.
Explanation:
The presentation of the long term liabilities of the balance sheet is presented below:
Liabilities section
Current liabilities
Note payable $450,000
Long term liabilities
Remaining balance $1,350,000
Total liabilities $1,800,000
Since the note payable is due for four years for $450,000 each so it shows the current liabilities and the remaining balance is transferred to the long term liabilities
Answer:
Online classes is new trend now these days. Both ways have their own advantage and disadvantages.
Explanation:
Now these days the trend of online classes are on top. This is not a longer novelty. This mode of learning changes the structure and experience of the class.
It is not necessary that the changes could be right for all. There are some advantage of online classes.
- Flexible schedule
- Faster completion
- To study anytime
- To login from anywhere
- To access the more colleges
- No commute
It has potentially lower cost
But in traditional classroom in campus, you have to attend the classes at campus. You will meet new people. Students get socialize with another students and new people
Both way of taking course have advantage and disadvantage.
Answer:
9.33%
Explanation:
The expected return of two asset portfolio is the weighted average of individual assets' expected to return as computed thus:
Portfolio expected return=(weight of market portfolio*expected return of market portfolio)+(weight of riskless security*expected return of riskless security)
weight of market portfolio=amount invested in market portfolio/total invested amount
weight of market portfolio=$80,000/$120,000=66.67%
expected return of market portfolio=market risk premium+riskless return
expected return of market portfolio=8%+4%=12%
weight of riskless security=1-66.67%=33.33%(since total investment which is 100% is 1)
expected return of riskless security=4%
Portfolio expected return=(66.67%*12%)+(33.33%*4%)
Portfolio expected return=\=9.33%
