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Georgia [21]
3 years ago
8

What is the typical relationship between interest rates on​ 6-month treasury​ bills, 10-year treasury​ notes, and baa corporate​

bonds?
a. they tend to move together over time with the corporate bond having the highest rate of interest
b. they tend to move randomly and independent of each other
c. they tend to move together over time with the​ 6-month treasury bill having the highest rate of interest
d. all three rates are virtually exact representations of the rate of inflation?
Business
1 answer:
Y_Kistochka [10]3 years ago
7 0

What is the typical relationship between interest rates on​ 6-month treasury​ bills, 10-year treasury​ notes, and baa corporate​ bonds? They tend to move together over time with the corporate bond having the highest rate of interest. A treasury note is issued by the US treasury as currency. A treasury bill is a short-dated government security with no interested by is given discounted. A Baa corporate bond is a medium-grade obligations and are considered investment eligible.

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A hospitality company is evaluating building a new hotel in Bloomington (capital project) that management forecasts will generat
Gre4nikov [31]

Answer:

A

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

Only projects with a positive NPV should be accepted. A project with a negative NPV should not be chosen because it isn't profitable.  

When choosing between positive NPV projects, choose the project with the highest NPV first because it is the most profitable.

NPV can be calculated using a financial calculator  

Cash flow in year 0 = $-165,000

Cash flow in year 1 - 6  = $45,000

I = 12%

NPV = $20,013.33

the project should be approved because NPV is positive

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

3 0
3 years ago
Brettson Inc. is a major player in the U.S. consumer electronics markets. It sells radios, televisions, DVD players, and a numbe
jasenka [17]

Answer: Differences in product and technical standards

Explanation:

International market has some variety of item when it comes to when the product compete with the locally sold item. When a product which is not being made in a particular country is entering that same country it has some competition to deal with and would have to go through some required standard already in place set by the the country which it's going into. Each country will have their different technical standard and this would determine some decisions on how the international product will sell in this market.

8 0
3 years ago
Jamar used to work as an office manager, earning $40,000 per year. He gave up that job to start a life-coaching business. In cal
Drupady [299]

Answer:

B. Opportunity Cost  

Explanation:

Opportunity cost is the alternative forgone or sacrifice made in other to satisfy another want. it refers to the wants that are left  unsatisfied in other to satisfy another want.

In the case of Jumar, the money he earned as an office manager ($40,000) could be referred to as the opportunity cost when he started his life coaching business.  

4 0
3 years ago
Identify values of, P, r, n, and t for the following compound interest problem and use those values and the following compound i
Crank

P, r, n, and t for the following compound interest problem and use those values and the following compound interest balance function :- p=20 , r=8 , n=64 , t=4 year

what is compound interest?

Compound interest, also known as interest on principal and interest, is the practice of adding interest to the principal amount of a loan or deposit. It occurs when interest is reinvested, or added to the loaned capital rather than paid out, or when the borrower is required to pay it, so that interest is generated the next period on the principal amount plus any accumulated interest. In finance and economics, compound interest is common.

In contrast to simple interest, which does not compound since past interest is not added to the principal for the current period, compound interest allows interest to build over time. The interest per period multiplied by the number of periods in a year yields the simple annual interest rate.

To learn more about compound interest with the help of given link:

brainly.com/question/18456266

#SPJ4

7 0
2 years ago
Suppose the minimum possible price of constructing homes is $50 per square foot. As a result of a sharp drop in the demand for h
Alex_Xolod [135]

Answer:

some firms will exit the industry

Explanation:

if the minimum possible price of constructing homes = $50 per square foot, it means that the marginal cost of building a square foot is $50. If the selling price is less than the marginal cost, then some firms will inevitably have to exit the industry. No firm can remain at an industry when its marginal costs are higher than its marginal revenue.

As supply lowers, the equilibrium price should increase, and some firms might return to the industry.  

7 0
3 years ago
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