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kow [346]
3 years ago
10

A thirty-year U.S. Treasury bond has a 4.0 percent interest rate. In contrast, a ten-year Treasury bond has an interest rate of

3.7 percent. If inflation is expected to average 1.5 percentage points over both the next ten years and thirty years, determine the maturity risk premium for the thirty-year bond over the ten-year bond.
Business
1 answer:
Anton [14]3 years ago
8 0

Answer:

The answer is 0.3%

Explanation:

nominal risk free rate for 10 years = 3.7 + 1.5 = 5.2

nominal risk free rate for 30 years = 4.0 + 1.5 = 5.5

Therefore maturity risk premium is 5.5 - 5.2 = 0.3%

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Roman55 [17]

the price is 546

because you add all that and you get that muchh

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3 years ago
High-low method The manufacturing costs of Carrefour Enterprises for the first three months of the year follow: TOTAL COSTS UNIT
borishaifa [10]

Answer and Explanation:

The computation of the variable cost per unit and the total fixed cost is shown below;

a. The variable cost per unit is

= (Highest total cost - lowest total cost) ÷ (Highest units produced - lowest units produced)

= ($440,000 - $300,000) ÷ (5,500 - 2,700)

= $140,000 ÷ 2,800

= $50

b. The total fixed cost is

= $440,000 - 5,500 × $50

= $440,000 - $275,000

= $165,000

5 0
3 years ago
*Will award Brainliest if right!*
Serhud [2]

Answer:

https://quiz   let.co  m/96700748/chapter-4-flash-cards/

Explanation:

Link above provides answers

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8 0
2 years ago
Read 2 more answers
If the price of a banana is twice the price of an apple, then the sale of a banana contributes twice as much to GDP as the sale
marysya [2.9K]

Yes this statement is true.

Explanation:

The sale of banana will add the twice contribution in the GDP as because the price is double and the sell of every single unit in the market in comparison of apple is able to add more currency in the economy than a sell of every single unit of apple.

The higher price may affect the sale as people will move to the other alternative but how much sell of banana will take place will able to add more money in the market as compared to apple.

3 0
3 years ago
Coles Company, Inc, makes and sells a single product, Product R. Three yards of Material K are needed to make one unit of Produc
mrs_skeptik [129]

Answer:

$40,970

Explanation:

The computation of the total cost of the material K is given below;

Material needed for August sales:

= 14,000 × 3

= 42,000

Desired ending inventory:

= 14,500 × 3 × 20%

= 8,700

Beginning inventory:

= 2,500

Now

Purchases in August:

= (42,000 + 8,700 - 2,500) × $0.85

= $40,970

7 0
2 years ago
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