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kow [346]
2 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]2 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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PilotLPTM [1.2K]

Answer: $428

Explanation:

From the question, we are informed that one bought 100 shares of stock at an initial price of $37 per share and that the stock paid a dividend of $0.28 per share during the following year, and the share price at the end of the year was $41.

The total dollar return on this investment will be calculated as:

= 100(41 - 37 + 0.28)

= $428

4 0
2 years ago
Allocative efficiency means that ___________.
frutty [35]

Answer:

D. society’s scarce resources are used to produce products that align with consumer preferences

Explanation:

Allocation efficiency is a point in the economy when the goods and services being produced are exactly what the customers or people of the economy want  and this is a point of production when marginal social benefit of producing the good is equal to the producers marginal cost.

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2 years ago
"Falling oil prices have caused a sharp decrease in the supply of oil." Speaking precisely, this quotation is ______.a. Correct;
FinnZ [79.3K]

Answer: Option (d) is correct.

Explanation:

According to the law of supply, it states that there is a positive relationship between the price of a commodity and the quantity supplied of a commodity. This means that as the price of a commodity increases, as a result the quantity supplied of that commodity increases.

Therefore, any change occur in the prices of a commodity will affect the quantity supplied of a commodity not supply of a commodity.

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3 years ago
Discuss motivation hygiene theory proposed by Fredrick Hertzberg
egoroff_w [7]

Answer:

This answers may help you

6 0
2 years ago
Because so many organizational funds are spent on compensation-related activities, it is crucial for top management and hr execu
Ymorist [56]
The answer should be : with what the organization is trying to accomplish.

Hope this helps !

Photon
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