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bulgar [2K]
3 years ago
10

5.The real risk-free rate of interest is 2%. Inflation is expected to be 3.5% the next 2 years and 6% during the next 3 years af

ter that. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities
Business
1 answer:
Nostrana [21]3 years ago
8 0

Answer:

17.50%

Explanation:

The computation of the yield on 3 year treasury securities is shown below:

The Yield on 3 year is

= Risk free rate of return   +  Inflation premium + Market risk premium

= 2% + (3.5% + 6% + 6%) ÷ 3 years + 0

= 2% + 15.5% + 0

= 17.50%

Hence, the yield on 3 years is 17.50% by applying the above formulas by considering the given information

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Fiscal policy is Question 20 options: the money supply policy that the Fed pursues to achieve particular economic goals. the spe
laiz [17]

Answer:

the spending and tax policy that the government pursues to achieve particular macroeconomic goals.

Explanation:

Fiscal policy in economics refers to the use of government expenditures (spending) and revenues (taxation) in order to influence macroeconomic conditions such as Aggregate Demand (AD), inflation, and employment within a country. Fiscal policy is in relation to the Keynesian macroeconomic theory by John Maynard Keynes.

A fiscal policy affects combined demand through changes in government policies, spending and taxation which eventually impacts employment and standard of living plus consumer spending and investment.

Fiscal policy typically includes the spending and tax policy that a government pursues in order to achieve particular macroeconomic goals such as price level, economic growth, Gross Domestic Product (GDP), inflation, unemployment and national income levels with respect to the central bank, demand or supply shocks, government policies, aggregate spending and savings.

According to the Keynesian theory, government spending or expenditures should be increased and taxes should be lowered when faced with a recession, in order to create employment and boost the buying power of consumers.

Generally, an economy will return to its original level of output (production) and price level when the short-run aggregate supply curve falls (decreases) and no changes in monetary and fiscal policies are implemented.

7 0
3 years ago
On July 1, 2017, Wyler Company placed a new asset into service. The cost of the asset was $90,000 with an estimated 9-year life
Drupady [299]

Answer:

$9000

Explanation:

Depreciation is a systematic allocation of the cost of an asset over its useful life. One method of depreciation is the straight line method where the value of an asset is uniformly and gradually written off over its useful life

<u>Working</u>

Cost of asset - $90000

Useful life - 9years

Salvage value - $9000

Fiscal year - (Jan 1- Dec 31)

Depreciable amount- (90000-9000)= $81000

Annual depreciation (straight line ) 81000/9 = $9000

December 31 2017 depreciation expense = $9000*1/2 = 4500

Decemebr 31 2018 depreciation expense = $9000

5 0
3 years ago
For each of the following annuities, calculate the annual cash flow. (Enter rounded answers as directed, but do not use rounded
jeyben [28]

Answer:

(A)  $   2,602.34

(B)  $    4,156.97  

(C)  $   8,233.47

(D)  $ 46,796.64

Explanation:

We need to solve for the PMT of an ordinary annuity:

FV \div \frac{(1+r)^{time} -1}{rate} = C\\

(A)

FV 24,850

time   8

rate           0.05

24850 \div \frac{(1+0.05)^{8}-1 }{0.05} = C\\

C  $ 2,602.337

(B)

FV 1,030,000

time:    43

rate        0.07

1030000 \div \frac{(1+0.07)^{43} -1}{0.07} = C\\

C  $ 4,156.972

(C)

FV 856,000

time   29

rate             0.08

856000 \div \frac{(1+0.08)^{29} -1}{0.08} = C\\

C  $ 8,233.466

(D)

FV 856,000

time    14

rate        0.04

856000 \div \frac{(1+0.04)^{14} -1}{0.04} = C\\

C  $ 46,796.641

5 0
3 years ago
Aw sh~ here we go again.....
Mamont248 [21]

Answer:

Explanation: Yessssss..

8 0
3 years ago
a stock split increases the number of authorized issued and outstanding shares of stock coupled with a proportionate reduction i
Fittoniya [83]

Answer:

stock price

earning per share

dividends per share

Explanation:

A stock split is when a company increases the number of its shares outstanding.

for example if a company has 4 million shares outstanding at a price of $20, earning per share is $1 and dividend per share is $0.50. this company announces a 2 for 1 split :

the number of outstanding shares becomes 2 x 4 million = 8 million

stock price becomes = $40 / 2 =$20

earning per share = $1 / 2 = $0.50

dividend per share = $0.5 / 2 = $0.25

4 0
3 years ago
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