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
ivanzaharov [21]
3 years ago
10

A two-year Treasury security currently earns 5.13 percent. Over the next two years, the real interest rate is expected to be 2.1

5 percent per year and the inflation premium is expected to be 1.75 percent per year. Calculate the maturity risk premium on the two-year Treasury security.
Business
1 answer:
pshichka [43]3 years ago
8 0

Answer:

maturity risk premium = 1.23 %

Explanation:

given data

currently earns =  5.13 %

real interest rate = 2.15 %

inflation premium = 1.75 %

solution

we get here maturity risk premium that is express as

maturity risk premium = currently earning -  real interest rate - inflation premium    .................1

put here value and we get

maturity risk premium = 5.13 % - 2.15 %  - 1.75 %

maturity risk premium = 1.23 %

You might be interested in
As the information technology advances and consumers buy products requiring more and more technology, the wages of people with h
Katyanochek1 [597]

Answer:

b. increase as the demand for high tech skills increases.

Explanation:

Due to the fact that the demand for technological products is increasing, the demand for people who possess high tech skills would also increase as firms would want to provide more tech products to satisfy the demand of consumers.

This would lead to an increase the demand for people with high tech skills. When demand exceeds supply, wages would rise.

I hope my answer helps you

6 0
3 years ago
A customer sells 1 ABC Corporation put for 2 on February 22, 2019, with a strike price of 50 and an expiration date of March 16,
Deffense [45]

Answer: a. He has an acquisition cost of $4,800 and a date of acquisition of March 15, 2007.

Explanation:

A Put amount gives the holder the right to sell underlying assets. As the Put was exercised, the customer would have to buy the underlying stock and the price they will pay for it is the strike price of the Put less the cost of the Put.

Options contracts come in 100s so;

Acquisition cost = (50 - 2) * 100

= 48 * 100

= $4,800.

The date of acquisition is the day the put was exercised.

8 0
3 years ago
suppose the price of an important input in the production of books were to increase. what can be concluded about the quantity of
Westkost [7]

The conclusion that can be drawn about the number of books supplied for $16 when an important production input of books increases is that the <u>quantity supplied</u><u> is reduced</u>.

<h3>How do production costs affect supply?</h3>

When production costs (input) increase, the quantity supplied at a given price decreases.

Conversely, a decrease in production costs increases the quantity supplied.

Thus, the conclusion that can be drawn about the number of books supplied for $16 when an important production input of books increases is that the <u>quantity supplied</u><u> is reduced</u>.

Learn more about supply and production costs at brainly.com/question/2223110

#SPJ12

7 0
2 years ago
Which of the following is an objection to relying solely on Return on Market Investment (ROMI) results?
masha68 [24]
The statement that <span>is an objection to relying that solely on Return on Market Investment (ROMI) results is that </span>"ROMI requires knowing what would have happened without the marketing expenditure." ROMI <span> is the contribution to profit attributable to </span>marketing<span> (net of marketing spending), divided by the marketing 'invested' or risked.</span>
4 0
3 years ago
Economists who criticize trade adjustment assistance argue that: macroeconomics
Arlecino [84]
<span>Economists who criticize trade adjustment assistance argue that macroeconomics is just apprehensive with the large scale. It is just undertaking the issues with regards to national performance and interest rates. Macroeconomics focuses on the general economic factors of the whole economies.</span>
3 0
3 years ago
Other questions:
  • Concerts in arenas are not excludable because it is virtually impossible to prevent someone from seeing the show.
    15·1 answer
  • In expectancy theory, valence refers to the:
    8·1 answer
  • In addition to higher productivity and efficiency, high-performance work systems may also include what other outcomes?
    14·1 answer
  • Resolve (7x+19)/(x+1)(x+5) into partial fraction​
    5·1 answer
  • 3. During the year, Walt travels from Seattle to Tokyo (Japan) on business. His time was spent as follows: 2 days’ travel (one d
    14·1 answer
  • Please help me asap!!!
    7·1 answer
  • Your firm designs PowerPoint slides for computer training classes, and you have just received a request to bid on a contract to
    13·1 answer
  • . Costs that the manager has the power to determine or at least strongly influence are called: Question 5 options: A. Uncontroll
    11·1 answer
  • Joe's company is looking to make a number of improvements. The firm would like to maximize potential volume and reserved instanc
    9·1 answer
  • Flexible Budgeting At the beginning of the period, the Fabricating Department budgeted direct labor of $72,000 and equipment dep
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!