Answer: 7.24%
Explanation:
From the question, we are told that:
3 years treasury securities have an interest rate = 1.92%
10 years treasury security has an interest rate = 5.62%
Let the 7 year treasury security interest in 3 years be represented by z.
Based on the expectation theory
( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10
(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10
(1.0192)^3 (1 + z%)^7 = (1.0562)^10
1.05871(1 + z%)^7 = 1.72767
Divide both side by 1.05871
(1 + z%)^7 = 1.72767/1.05871
(1 + z%)^7= 1.6319
1 + z% = 1.6319^1/7
1 + z% = 1.6319^0.1429
1 + z% = 1.0724
z% = 1.0724 - 1
z% = 0.0724
We then convert the decimal to percentage
z = 7.24%
The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .
There you go. let me know if this is right
I think it’s either the last one or the first one sorry if I’m wrong
Answer:
Correct option is (C)
Explanation:
Mass customization refers to manufacturing products suited for individual needs and preferences at the same time producing huge amount of products at low cost offering value to customers.
Customers are allowed to make modifications as per their requirements in the basic model offered by the organization. So customer is free to pick the color, design and model of their choice.
Spokes bikes is therefore using mass customization.
Answer:
$49,000
Explanation:
The cash balance at the end of the period is the remaining balance after considering the opening cash balance and the net movement (which is the inflow and outflow) in cash during the period.
Let the cash payments be y
$29000 + $50000 - y = $30,000
y = $29000 + $50000 - $30,000
y = $49,000
Cash payments for the month of May were $49,000
