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beks73 [17]
3 years ago
8

Which of the following statements is true?a. The higher the maturity risk premium, the higher the probability that the yield cur

ve will be inverted.b. The most likely explanation for an inverted yield curve is that investors expect inflation to increase in the future.c. If the yield curve is inverted, short-term bonds have lower yields than long-term bonds.d. Even if the pure expectations theory is correct, there might at times be an inverted Treasury yield curve.e. Inverted yield curves can exist for Treasury bonds, but because of default premiums, the corporate yield curve cannot become inverted.

Business
1 answer:
tia_tia [17]3 years ago
8 0

Answer:

b. The most likely explanation for an inverted yield curve is that investors expect inflation to decrease

Explanation:

I have attached an image which plots the behavivour of a yield curve and inflation in a same period. As you can observe, there is an indirect relation between boths curves.

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Purchasing power is a producer's ability to buy goods and services. answer true false
Black_prince [1.1K]
Having money with which to buy goods and services is called purchasing power
6 0
3 years ago
Colorado Mountain Mining paid $ 896,900 for the right to extract mineral assets from a 500,000​-ton deposit. In addition to the
Zepler [3.9K]

Answer:

(a) The asset would be recorded in accordance to IAS 16 Property, plant & equipment.

Dr  Mining Asset   896,900

Cr       Bank                     896,900

(b) IAS 16 says that the costs incurred to make the asset ready for use must be capitalized as part of the asset. This means the license fee $1000 filing fee, License fee $2100 and $50,000 amount paid for geological survey must be capitalized. So the entry is as under:

Dr Mining asset (1k+2.1k+50k) $53,100

Cr                      Bank                       $53,100

(c) This assets must be depreciated on the basis of tons of minerals extracted which is 60 thousands tons in the first year.

Depreciation Expense = (60k tons / 500k tons)   * (Total capitalized cost)

=(60,000/500,000) * (896,900+53,100) = $108,000

The Double entry of Depreciation Expense would be as under:

Dr Depreciation Expense  $108,000

Cr                Accumulating Depreciation  $108,000

3 0
3 years ago
Finding the required interest rate: Your parents will retire in 18 years. They currently have $250,000, and they think they will
Salsk061 [2.6K]

Answer:

i= 8% annual compunded

Explanation:

Giving the following information:

Your parents will retire in 18 years. They currently have $250,000, and they think they will need $1,000,000 at retirement.

We need to calculate the interest rate required to reach the $1 million goal in 18 years without any additional deposit.

FV= PV*(1+i)^n

Isolating i:

i= [(FV/PV)^(1/n)] - 1

i= [(1,00,000/250,000)^(1/18)] - 1= 0.08

i= 8% annual compunded

7 0
3 years ago
Incorrect answer. Your answer is incorrect. Try again.
liubo4ka [24]

Answer:

Dealer Market

Explanation:

In a dealer market, multiple dealers give out their various prices on the sales and purchases of their specific and particular security of instrument. It is a financial tool for dealers in the market. The dealer market becomes more efficient for financial securities because it provides superior mechanism which should be protected.

It enables buyers and sellers to buy and sell independently through the market makers, known as dealers.

Foreign exchange and bonds are found in the dealer market.

In the secondary market, securities are traded by investors while in the primary market, they are created.

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3 years ago
In capitalism what does competition do for consumers?
Aleks [24]

D. It keeps prices fair for consumers

3 0
3 years ago
Read 2 more answers
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