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
fredd [130]
3 years ago
7

Assume the Expectations Hypothesis regarding the term structure of interest rates is correct.

Business
1 answer:
S_A_V [24]3 years ago
6 0

Answer:

2.5% is the current two years interest rate

Explanation:

If the first year interest rate is 2% and expected coming year interest rate is 3% based on the hypothetical projection which is believed to be correct, then the interests rate for the two years will be the average of the interest of the two years in focus which gives us:

Current IR = IR (yr 1) + IR (yr 2) / no of years

Current IR = 2 + 3 / 2 = 2.5

You might be interested in
A major conflict of interest between top executives and owners, is that top executives wish to diversify the firm in order to ,
lutik1710 [3]
For the answer to the question above, I think the answer is because they want <em><u>"</u></em><u><em> to</em></u><u><em> </em></u><span><u><em>reduce their employment risk; increase the company's value" </em></u>that's why they want to diversify</span>
I hope my answer helped you. Have a nice day!
6 0
3 years ago
Producers are able to produce more of a good and to make more profit from
Butoxors [25]

Answer:

high production costs

5 0
2 years ago
Inayah needs Rs.100, 000 to start an ice-cream business. If she uses Rs.40, 000 from her savings and another Rs.60, 000 borrows
Lelu [443]

Answer: 5% of RS 100,000

Explanation:

Opportunity cost is what an economic agent such as an individual, form or government forgoes when a choice is made from different available choices.

Here, since Inaya has used Rs100000 for her ice cream business, the opportunity cost will be the 5% interest that she could have made on the money used for the business

4 0
2 years ago
What position is typically responsible for general financial​ accounting, managerial​ accounting, and tax​ reporting?
hram777 [196]
<span>The position that is generally responsible for the general accounting, managerial accounting and tax reporting is the controller, the answer is A. A controller is responsible for all the accounting operations of a company, this includes periodic financial reports, maintenance of accounting records and a comprehensive set of budgets and controls that mitigate company risks.</span>
8 0
3 years ago
After an initial investment of $20,000, Joseph's bank account has earned $16,000 in interest over the last 10 years. At what rat
Daniel [21]

Answer:

what rate is he earning interest

Interest rate is 8%

Explanation:

I = C·i·t,

C Initial Investement

i Anul interest rate

t time

 

16000=20000*i*10

16000=200000*I

I=16000/200000

I=0,08

I=8%

6 0
3 years ago
Other questions:
  • In July, one of the processing departments at Okamura Corporation had beginning work in process inventory of $26,000 and ending
    12·1 answer
  • Which of the following is true about organizational culture? The strength of an organization's culture refers to how widely and
    14·1 answer
  • According to the circular flow model, which of the following is notprovided by consumers?
    10·1 answer
  • Which of the following statements is CORRECT?
    13·1 answer
  • Residual income is ____________.A. the difference between the net income the analyst expects the firm to generate and the requir
    15·1 answer
  • Girls between the ages of 8 and 15 are one of the growing markets for high-end shoe manufacturers, and podiatrists say the trend
    13·1 answer
  • Seymour owns 3 acres of beautiful waterfront property on a large inland lake. In his will, Seymour donates the land to the state
    15·1 answer
  • Jasmine Smith owns a condo worth $340,000, a car valued at $27,000, and miscellaneous assets worth $8,500. She owes $189,000 on
    7·1 answer
  • As chief financial officer, you want to send the fourth quarter profit/loss spreadsheets to the president of the company. How ca
    14·1 answer
  • The concept that people should pay taxes based on the benefits they receive from government services is called?.
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!