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
Yuliya22 [10]
3 years ago
5

The one-year interest rate over the next 10 years will be 3%, 4.5%, 6%, 7.5%, 9%, 10.5%, 13%, 14.5%, 16%, and 17.5%. Using the e

xpectations theory, what will be the interest rates on a three-year bond, six-year bond, and nine-year bond?
Business
1 answer:
Alja [10]3 years ago
5 0

Answer:

Explanation:

interest rates on a three-year bond =(int in year1+int in year2+int in year3)/n =  (3+4.5+6)/3 =4.8%

interest rates on a six-year bond = (3%+4.5%+6% +7.5%+ 9%+ 10.5%)/6 = 7.35%

interest rates on a nine-year bond = (3%+4.5%+ 6%+ 7.5%+ 9%+ 10.5%+ 13%+ 14.5%+16%)/9 =10.23%

So, int rate on a 3 year bond is 4.8%; on a 6 year bond is 7.35%; on a 9 year bond 10.23%

You might be interested in
Mom & Baby Inc., a firm specializing in mother and childcare products, gives free samples of their latest products to new mo
Inga [223]

Answer:

<u>Amplified word of mouth.</u>

Explanation:

Word of mouth marketing refers to using customer recommendations for the purpose of advertising so as to accomplish marketing goals.

Usually this form of marketing is spread from one customer to another in the form of recommendations.

For instance, a customer who uses a product and liked it, posts a favorable review on the product site, praising the product. Such a review would influence other prospective buyer and their purchases.

There are two kinds of word of mouth namely, organic and amplified. In the case of former, the review and praises arise out of natural tendency of the customer to recommend the product.

In case of the latter, the marketers launch such campaigns that encourage word of mouth in both existing as well as new communities.

In the given case, the company distributes free samples and seeks feedback of the target customers on the company's blog, which would be visible to prospective customers. The goal being to stimulate positive word of mouth, this method refers to amplified word of mouth.

8 0
3 years ago
One HEADLINE article in the text, "Bitter Florida cold drives up orange juice prices," describes the impact of a freeze on Flori
kirill115 [55]

Answer:

The equilibrium quantity will decrease

Explanation:

There will be a reduction in the supply of citrus crops and also reduction in orange juice produces from these fruits.

A shift in supply to the left will occur as a result of the cold. This will also result in reduction in equilibrium quantity demanded.

This is illustrated bin the attached diagram

5 0
3 years ago
Suppose that the government imposes a commodity tax on alcohol. Assuming that both alcohol demand and supply are relatively elas
belka [17]

Answer:

c. Alcohol consumption decreases, whereas the alcohol market price increases if the tax is placed on the sellers or decreases if the tax is placed on the buyers.

Explanation:

Elastic demand is the situation that when the price of a good goes up the quantity demanded reduces. Since alcohol demand and supply are both elastic, If commodity tax is imposed on sellers then they decrease the supply and increase the price of alcohol. The increased price of alcohol will make buyers buy less of alcohol thereby reducing the consumption of alcohol.

6 0
3 years ago
Can someone help me with this?
natita [175]
Your photo won’t load so i can’t help i don’t know if you didn’t list one or that it’s blank
8 0
3 years ago
Read 2 more answers
Which of the following is a correct statement regarding the shipment of goods?
Nutka1998 [239]

Answer:

The answer is A) The shipping document must be in paper form.

Explanation:

When you are shipping goods (specially if you´re exporting or importing goods) you need a lot of paperwork done. The carrier, customs official, the banks involved, insurance companies, etc., all require several types of documents. The most important ones are:

  • Proforma invoice
  • Bill of Lading
  • Shipper´s Letter of Instructions (SLI)
  • Packing List
  • Commercial Invoice
  • Customs documents
  • Certificates of Origin
  • Dangerous Goods forms
  • Bank Draft

And all those documents need to be in paper form and some require several copies.

6 0
3 years ago
Other questions:
  • Market competition doesn't eliminate scarcity.<br><br> True<br><br> False
    10·2 answers
  • Aggregate demand is everything produced while simple demand is one good. Which statement reflects their  similarity?
    6·1 answer
  • Sauder Corporation reports the following information: Net income $380,000 Depreciation expense 70,000 Increase in accounts recei
    5·2 answers
  • You have just purchased a share of preferred stock for $50.00. The preferred stock pays an annual dividend of $5.00 per share fo
    8·1 answer
  • Christopher works as a news anchor for a television network. In addition to his regular pay, at the end of each year, his compan
    5·1 answer
  • Producer surplus is
    11·1 answer
  • A question beginning with "how" or "why" is usually what type of research question?
    5·2 answers
  • The utility is generally related to​
    15·1 answer
  • Zimmerman Corp. had 1,500 units of part M.O. on hand May 1, 2020, costing $21 each. Purchases of part M.O. during May were as fo
    9·1 answer
  • What might cause a demand curve to shift to the right?
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!