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Dafna1 [17]
3 years ago
15

The yield on a one-year Treasury security is 4.9200%, and the two-year Treasury security has a 7.3800% yield. Assuming that the

pure expectations theory is correct, what is the market's estimate of the one-year Treasury rate one year from now? ? 8.4150% O 9.9000% O 11.2860% 0 12.573096 Recall that on a one-year Treasury security the yield is 4.9200% and 7.3800% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.4000%. What is the market's estimate of the one-year Treasury rate one year from now? O 7.718096 9.080090 O 11.5320% O 10.3510%
Business
1 answer:
gayaneshka [121]3 years ago
7 0

Answer:

Option (b) is correct.

Option (b) is correct.

Explanation:

1. Pure Expectation Theory :

Each option must provide the same amount of cash at the end of 2 years, which implies that,

CF at the end of year 2 = CF at the end of year 1

[tex](1+0.0738)^{2} = (1+0.0492) (1+x) [tex\]

Hence, x = 9.90

so the market's estimate of the one year Treasury rate one year from now it will be 9.90%

2. In case of maturity risk premium, the cash flow of two year treasury security will reduce, it will be:

= 7.38 - 0.40

= 6.98.

Hence, Treasury Rate will be as follows:

CF at the end of year 2 = CF at the end of year 1

[tex](1+0.0698)^{2} = (1 + 0.0492) (1 + x)[tex\]

x = 9.080%

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The ________ innervation of the kidneys reduces urine production, while the function of its ________ innervation is unknown
mrs_skeptik [129]

The <u>sympathetic</u> innervation of the kidney reduces urine production, while the function of its <u>parasympathetic</u> innervation is unknown.

The kidneys are innervated through the sympathetic neurons of the autonomic nervous system thru the celiac plexus and splanchnic nerves. reduction of sympathetic stimulation outcomes in vasodilation and extended blood flow thru the kidneys in the course of resting situations.

Activation of sympathetic nerves to the kidney increases tubular sodium reabsorption, renin launch, and renal vascular resistance. These moves make contributions to long-time period arterial stress elevations by way of shifting the pressure-natriuresis curve to the proper

There is a two-way relationship between the sympathetic nervous system and the kidney. On the one hand, the sympathetic nerve device influences renal function, i.e. renal hemodynamics, renin secretion, and tubular sodium transport.

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4 0
1 year ago
Before the year began, Murphy Manufacturing estimated that manufacturing overhead for the year would be $176,000 and that 13, 70
saveliy_v [14]

Answer:

A. $194, 035

Explanation:

Predetermined Manufacturing overhead Rate = Estimated total overheads / Estimated direct labor hours

Predetermined Manufacturing overhead Rate = $176,000 / 13,700

Predetermined Manufacturing overhead Rate = $12.85 /  direct labor hour

Actual Labor hours = 15,100 hours

Manufacturing overhead allocated = $12.85x 15,100

Manufacturing overhead allocated = $194,035

The correct option is A. $194, 035

7 0
3 years ago
Shuai is writing a report with a great deal of complicated numerical information. to clarify and simplify this information for d
AveGali [126]

She should put this into a chart or graph. This is a graphical illustration of data, in which "the data is characterized by symbols.” By organizing data, it can be more effortlessly understand what has been perceived. Subsequently, most of the data is quantitative, data tables and charts are typically used to consolidate the information. Graphs are shaped from those data tables.

6 0
3 years ago
On January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $54,480. Calvin Co. has one recorded ass
Sunny_sXe [5.5K]

Answer:

Beckman noncontrolling interest in subsidiary income $10,520

Calvin Machine (net of accumulated depreciation) $71,200

Explanation:

To calculate noncontrolling interest in subsidiary's income;

Revenue    $65,550

Expenses   $39,250 (29,250 + $6,800 + $3,200)

Net Income $26,300

Noncontrolling percentage = 40%

NonControlling Income = $10,520

Depreciation of Machine = \frac{Fair value of Machine - Book value}{estimated useful life}

\frac{78,000 - 10,000}{10 years} = 6,800 per annum

Amortization of trade secrets = \frac{Fair Value Total - Machine value}{Useful life}

Amortization of trade secrets = \frac{90,800 - 78,000}{4 years}

= 3,200

3 0
3 years ago
The amount by which the overhead applied to jobs during a period exceeds the overhead incurred during the period is known as: Mu
liubo4ka [24]

Answer:

E. Over applied overhead

Explanation:

Over applied overhead is defined as excess amount of overhead applied during a production period over the actual overhead incurred during that period. In other words, it means excess overhead applied to work over the amount of overhead actually incurred.

When this occurs, it is called favourable variance and it is added to the budgeted profit in the end of the accounting period in a financial statement.

5 0
3 years ago
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