1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Delvig [45]
4 years ago
13

Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 5.90%, and a maturity risk premium of 0.

10% per year to maturity applies, i.e., MRP = 0.10%(t), where t is the number of years to maturity. What rate of return would you expect on a 1-year Treasury security, assuming the pure expectations theory is NOT valid? Disregard cross-product terms, i.e., if averaging is required, use the arithmetic average.
Business
1 answer:
Kamila [148]4 years ago
6 0

Answer:

The answer is 9.00%

Explanation:

real risk-free rate = 3.00%

average expected future inflation rate = 5.90%

Maturity risk premium = 0.10%

The expected rate of return on a 1 year treasury security would be = the average expected future inflation rate + maturity risk premium + real risk-free rate.

= 3.00% + 5.90% + 0.10%

= 9.00%

You might be interested in
g The $1,000 face value bonds of Trident Corporation have coupon of 5.5 percent and pay interest semiannually. Currently, the bo
Maslowich

Answer:

The answer is 5.73%

Explanation:

Given Coupon rate=5.5%; Years of maturity= 12years, Face value bonds= $1,000, Price=98.2

NPER= Years of maturity *2= 12*2=24

PMT= (Face value * coupon rate)/2= (1000*5.5)/2= 5500/2= 2.75

Therefore:

Rate = (NPER, PMT, -Price, Face value)= (24, 2.75, -98.2, 1000)= 2.87%

Yield to maturity= Rate *2= 2.87*2= 5.73%

6 0
3 years ago
What was the total manufacturing cost assigned to Job P? (Do not round intermediate calculations.) Total manufacturing cost_____
Nastasia [14]

Answer:

$52,285

Explanation:

The computation of the total manufacturing cost assigned to Job P is shown below:-

Total manufacturing cost = Direct material + Direct labor + Manufacturing overhead applied

= $13,000 + $21,000 + (2,300 × $7.95)

= $13,000 + $21,000 + $18,285

= $52,285

Therefore for computing the total manufacturing cost assigned to Job P we simply applied the above formula.

6 0
3 years ago
What is meant by taking the stand? Choose all that apply.
amm1812
I think it’s 3 and 4 as the answer.
8 0
3 years ago
Read 2 more answers
Fundamental analysis is likely to yield best results for _______.A. NYSE stocksB. neglected stocksC. stocks that are frequently
TiliK225 [7]

Answer:

<u>C. stocks that are frequently in the news</u>

Explanation:

  • It is an accounting ad financial analysis usually analyzed by the business assets, liabilities, and earnings. Related to the interest-earning and the production, earnings, employment, GDP, housing and manufacturing. conducting a company's stock valuation.
  • And is used to find out the internist's values of share. It often includes the industrial, economic, and company analysis. The port foils style includes Buy and holds investors, value investors.
6 0
3 years ago
Simone has worked as an editorial assistant at a magazine publisher for the last six months. Her boss is impressed with her dedi
pochemuha

Answer:

​job enlargement

Explanation:

Job enlargement refers to the increase in duties and responsibilities related to the job. It combined all other activities with the same level in the organization

Since in the question it is mentioned that Simone boss is impressed by her dedication and her hard work so he assigner her more task for freelancer writers

Therefore this situation represents the job enlargement

5 0
4 years ago
Other questions:
  • A plan to exploit experience-based cost and location economies, transfer core competencies with the firm, and pay attention to l
    12·1 answer
  • ?in order to receive customers' feedback on the company's latest product, the marketing managers of havtol inc., a food products
    7·1 answer
  • An advantage I have a credit card is that you can’t spend more money than you actually have
    8·1 answer
  • Suppose that policymakers are considering placing a tax on either of two markets. In Market A, the tax will have a significant e
    7·1 answer
  • Suppose the marginal propensity to consume is equal to 0.75. If the government lowers tax rates and tax revenue falls by $100 mi
    5·1 answer
  • At the beginning of the year, Smith, INc., budgeted the following: Units: 10,000 Sales: $100,000 Total variable expenses: $ 60,0
    15·1 answer
  • Harmon opens a new restaurant, which he insures for twice its worth. Knowing his business is insured, Harmon becomes careless in
    15·1 answer
  • Explain how the looting of shops and malls will affect businesses in terms of the relationship between the social responsibility
    7·1 answer
  • Find the Mean of 18, 24, 17, 21, 24, 16, 29, 18
    6·2 answers
  • two friends, alex and sam, go shopping. alex is thinking of purchasing a new shirt for $5 that has a "made in indonesia" tag on
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!