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
damaskus [11]
3 years ago
14

Suppose the rate of return on a 10-year T-bond is 4.05%, the expected average rate of inflation over the next 10 years is 2.0%,

the MRP on a 10-year T-bond is 0.9%, no MRP is required on a TIPS, and no liquidity premium is required on any Treasury security. Given this information, what should the yield be on a 10-year TIPS? Di
Business
1 answer:
Keith_Richards [23]3 years ago
6 0

Answer:

1.15%.

Explanation:

This can be calculated as follows:

Yield be on a 10-year TIPS = Rate of return on the 10 year T-bond - Average Inflation - Market Risk Premium (MRP)

Therefore, we have:

Yield be on a 10-year TIPS = 4.05% - 2.0% - 0.9% = 1.15%

Therefore, the yield on a 10-year TIPS should be 1.15%.

You might be interested in
Which of the following characteristics describe Millennial employees, in general?
insens350 [35]

Answer:

B. Globally conscious.

Explanation:

Millenials are the generation of people born in the 80s and 2000s, and represent people who were born at a time when technology and the internet were strengthened, which caused a revolution in the form of social interactions around the world.

The internet revolutionized business, due to the speed in the exchange of information, it was possible for business to expand and integrate, which generated globalization, which is the interaction of businesses between countries in search of competitive and strategic advantages in the global market.

Therefore, it is correct to say that the generation of millennials are more globally aware employees, due to the fact that they have grown up in a cultural and social environment marked by the use of the internet and the availability of information, which makes them more aware about business. global interactions, multicultural interactions and more possibilities to understand the market and contribute to its development.

7 0
3 years ago
Choose 3 to 4 companies or organizations to review their policies. How do they differ and how might they be the same. Submit the
Angelina_Jolie [31]
  • Apple
  • Starbucks
  • Godrej industries

Explanation:

Policies of Apple:

  • Innovation: Apple has given more than what we have expected.
  • Integrity: Apple has stayed true to itself and doesn't copy.
  • Originality: The reinvention of features has made Apple stand out.

Policies of Starbucks:

  • Expand its stores in the US and internationally by franchising/licensing.
  • Designing stores that convey Starbucks image and brand.
  • Expand product offerings beyond its retail stores& enter new markets.

Policies of Godrej Industries:

  • Godrej industries aims to provide innovation and quality products.
  • Commited not only to consumers but also society and environment.
  • Excellent standards of ethical behaviour.
3 0
3 years ago
In determining basic earnings per share, dividends on nonconvertible cumulative preferred stock should be:a. deducted from net i
DiKsa [7]

Answer:

b. deducted from net income whether declared or not

Explanation:

The formula to compute the basic earning per share is shown below:

Basic earning per share = (Net income - preferred stock dividend) ÷ (weighted average of outstanding shares)

In the case of the non- convertible cumulative preferred stock, the dividend should be paid whether the business earns profit or loss. If the business does not earn any profit during a particular year, in that period the dividend amount is carried forward to next year.

So, the dividend arrears are to be paid to the cumulative preferred stock.

4 0
3 years ago
¿Qué entiende por gestión publica y gestión institucional?
Anit [1.1K]
Gestión publica es con gente normal pero gestión institucional es con gente de negocios
7 0
3 years ago
Suppose that consumer income increases and that ground meat is an inferior good. Which of the following will occur in the market
antoniya [11.8K]

Answer:

d. Market clearing price will fall, and equilibrium quantity will fall.

Explanation:

Inferior goods are those goods which do not behave normally to market.

As with increase in consumer spending capacity, their demand decreases.

Accordingly with decrease in demand , the prices will fall.

Thus, either Statement b is correct or statement d.

Since demand and price both tend to fall, the equilibrium quantity will fall for the same, as the demand will be low, the equilibrium quantity will fall to meet the demand level.

Thus, Statement D is correct.

4 0
3 years ago
Other questions:
  • A company's normal selling price for its product is $20 per unit. however, due to market competition, the selling price has fall
    14·1 answer
  • Carly deposited $800 in an account that earns 6% compounded annually. Lara deposited $800 in an account that earns 6% simple int
    11·1 answer
  • Plastic and steel are substitutes in the production of body panels for certain automobiles. If the price of plastic increases, w
    7·1 answer
  • Do you think the NELK BOYS are clickbaiting sometimes?
    8·1 answer
  • Rebecca sells her personal scooter for $550. She purchased the scooter for $700 three years ago. She also sells a painting for $
    12·1 answer
  • If the demand and supply curves for product X are stable, a goverment mandated increase in the price of X will:_______
    5·1 answer
  • A job was budgeted to require 3 hours of labor per unit at $8.00 per hour. The job consisted of 8,000 units and was completed in
    13·1 answer
  • In the audit of notes payable, an auditor testing the ASB balance assertion of accuracy and valuation most likely would: _______
    5·1 answer
  • Fair Housing Act a. All of the other answers b. Mandated that no one should be denied access to a home based on the color of the
    6·1 answer
  • What is the relationship between financial system and economy
    10·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!