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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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A stock sells for $6.99 on December 31, providing the seller with a 6% annual return. What was the price of the stock at the beg
Dimas [21]

Answer:

Correct option is 6.59

Explanation:

Selling price of stock at the end of the year is $6.99. Annual return rate is 6%. Price of stock at the beginning will be present value of stock valued at the end discounted at 6%. Computation is as shown below:

Present\ value\ or\ price\ of\ stock = Selling\ price\left ( \frac{1}{1+i} \right )^{n}

= 6.99\left ( \frac{1}{1+0.06} \right )^{1}

= \frac{6.99}{1.06}

= $6.59

Therefore, Stock's price in the beginning of the year is $6.59.

6 0
3 years ago
X-Tel budgets sales of $70,000 for April, $120,000 for May, and $80,000 for June. In addition, sales commissions are 10% of sale
ad-work [718]

Answer:

Instructions are listed below.

Explanation:

Giving the following information:

X-Tel budgets sales of $70,000 for April, $120,000 for May, and $80,000 for June. In addition, sales commissions are 10% of sales dollars and the company pays a sales manager a salary of $7,000 per month. Sales commissions and salaries are paid in the month incurred.

April:

Sales comission= 0.10*70,000= 7,000

Sales manager salary= 7,000

Total= 14,000

June:

Sales comission= 0.10*120,000= 12,000

Sales manager salary= 7,000

Total= 19,000

July:

Sales comission= 0.10*70,000= 8,000

Sales manager salary= 7,000

Total= 15,000

3 0
3 years ago
Which part of a modern firearm has the same function as the lock on a muzzleloader?
siniylev [52]
The action is the same
3 0
3 years ago
And an anonymous survey, 2.5% of your employees say that they are “ready to quit”. You employ 50,000 people. How many are ready
Anit [1.1K]

Answer:

1250

Explanation:

2.5%*50,000=1250

or

50,000*0.025=1250

7 0
2 years ago
Swee Yin's fashion-apparel department store runs a popular biannual sale on men's hats, with large discounts and surprise bonus
aniked [119]

Answer:

D) By creating a new ad group for the sale.

A) By setting campaign start/end dates.

Explanation:

Swee Yin must first create a new ad group in order for their campaign and products to show up on search results whenever google user search any related item or topic. Since this campaign only last a limited time, Swee Yin must set when the campaign starts and when it should end. They could post there campaign ads in both google search network and google display.

4 0
3 years ago
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