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VikaD [51]
3 years ago
10

Which of the following explains how can a yield curve be flat or downward sloping if a maturity risk premium exists? a. Investor

s expect inflation to be higher in the future. b. Investors expect inflation to be lower in the future. c. Investors expect inflation to remain the same in the future. d. Investores expect the real rate of interest to rise in the future.
Business
1 answer:
ratelena [41]3 years ago
7 0

"Investors expect inflation to be lower in the future" explains how can a yield curve be flat or downward sloping if a maturity risk premium exists.

<u>Answer:</u> Option B

<u>Explanation:</u>

Yield curves monitor the connection of interest rates to the treasury securities of US maturity in a given time. With interest rate changes, the slope, shape, and scale of yield curves can vary over time. The gradient of the yield curve offers a good indication of the path of future short-term interest rates; an upward sloping curve usually suggests that higher future interest rates are expected by financial markets; a downward sloping curve implies perceptions of lower future rates.

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Sigma Corporation applies overhead cost to jobs on the basis of direct labor cost. Job V, which was started and completed during
murzikaleks [220]

Answer:

$3,283

Explanation:

Calculation for the overhead cost be added to Job W at year-end

Using this formula

Overhead cost =(Overhead cost / Direct Labor) *Job W Direct Labor

Overhead cost=($6,365 / $9,500) *$4,900

Overhead cost=0.67*$4,900

Overhead cost=$3,283

Therefore the overhead cost be added to Job W at year-end is $3,283

4 0
2 years ago
Jamison's gross tax liability is $7,200. Jamison had $2,625 of available credits and he had $4,400 of taxes withheld by his empl
mina [271]

Answer:

The answer is: Jamison has $175 in taxes due.

Explanation:

To determine the amount of taxes that Jamison still has to pay, we can use the following formula:

Taxes due = tax liability - (taxes withheld by employer + tax credits)

Taxes due = $7,200 - ($4,400 + $2,625) = $7,200 - $7,025 = $175

Jamison has $175 in taxes due.

7 0
3 years ago
The Company deposits $6,900 in an account that earns interest at an annual rate of 8%, compounded quarterly. The $6,900 plus ear
astra-53 [7]

Answer:

$8750.87

Explanation:

This is compound interest problem. The formula used to solve this would be:

F=P(1+r)^t

Where

F is the future value (what we want, after 3 years)

P is the initial value (given 6900)

r is the rate of interest per period

here, 8% per year, so 8/4 = 2% per period (since compounded per quarter)

t is the time (3 years and compounding per year so times of compounding is 3*4 = 12), so t = 12

Substituting, we get our answer:

F=P(1+r)^t\\F=6900(1+0.02)^{12}\\F=6900(1.02)^{12}\\F=8750.87

<u>There will be about $8750.87 at the account at the end of 3 years!</u>

8 0
3 years ago
Consider the following statements, and indicate which variable is an independent variable and which variable is a dependent vari
Kobotan [32]

Answer and Explanation:

A. When the employees are more educated and have the higher income as compared with the less educated employees so here education would be indepedent variable and the income is dependent variable. Also the relationship between these two variables i.e. education and income is positive

Therefore the same is relevant

8 0
2 years ago
What can you do when you reach a deadlock in a negotiation?
Ivan
A: become more aggressive
3 0
1 year ago
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