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Lisa [10]
3 years ago
10

Interest rates on 4-year Treasury securities are currently 5.8%, while 6-year Treasury securities yield 7.95%. If the pure expec

tations theory is correct, what does the market believe that 2-year securities will be yielding 4 years from now? Calculate the yield using a geometric average.
a.None

b.80%

c.15%

d. 6.5%

e. 5.5%
Business
1 answer:
Hoochie [10]3 years ago
7 0

Answer:

2 year yield 4 years from now = 11.0%

Explanation:

2 year yield 4 years from now = [ ( 1 + 0.0795)^6 / ( 1 + 0.058)4]1/2 - 1

2 year yield 4 years from now = [ 1.50073 / 1.286466]1/2 - 1

2 year yield 4 years from now = 1.011 - 1

2 year yield 4 years from now = 11.0%

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C I think bro Ishtar
6 0
3 years ago
Earnhardt Driving School's 2008 balance sheet showed net fixed assets of $4 million, and the 2009 balance sheet showed net fixed
harkovskaia [24]

Answer:

Net capital spending = $2,985,000

Explanation:

There are two financial years in consideration

They are 2008 and 2009

Closing values of 2008 = Opening values of 2009

Now, closing value of net assets at 2008 = $4 million

Closing value of net assets for 2009 = $6.2 million

Net capital spending = Gross fixed assets at year end - Opening fixed assets

Gross fixed assets = Net Value + Depreciation

= $6.2 million + $785,000

= $6,985,000

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4 0
3 years ago
​in a buying center, the person who has the formal or informal power to choose or approve the selection of a supplier or brand i
Archy [21]
The answer is that the person is known as "decider".

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7 0
3 years ago
C&amp;A uses an assembly line of 20 stations to make a product. The cycle time is 5 minutes per unit. Step 6 is the most error-p
algol [13]

Answer:

C. 70 minutes

Explanation:

The computation of the information turnaround time is shown below:

But before that first we have to find out the remaining stations which is

= Total stations - error stations

= 20 stations - 6 stations

= 14 stations

Now the information turnaround time is

=  Remaining number of stations × cycle time per unit

= 14 stations × 5 minutes per unit

= 70 minutes

We simply applied the above formula so that the information turnaround time could come

7 0
3 years ago
Shorter Company had originally expected to earn an operating income of $130,000 in the coming year. Shorter's degree of operatin
Snowcat [4.5K]

Answer:

$192,400

Explanation:

Shorter Company

$130,000 + (0.48 * $130,000)

=$130,000+$62,400

= $192,400

Therefore Shorter's revised expected operating income for the coming year will be $192,400

8 0
3 years ago
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