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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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George recently purchased a computer from HardDigits Inc., a firm that sells assembled desktop computers and other electronic pr
Olin [163]

Answer:

The correct answer is Product Bundling.

Explanation:

The product bundling refers to a sales strategy that includes a defined number of products that are offered as one. This practice is increasingly common in companies that are trying to penetrate the market or want to exit products that are close to expiration or depreciation due to technology. The buyer sees an opportunity to purchase certain products that they could not have done when they are just in the stage of maturing sales.

5 0
2 years ago
When managers are engaged in problem solving, there are several steps they should go through in order to prevent themselves from
andrew-mc [135]

Answer:

a. Defining the problem, generating alternatives, selecting an alternative, implementing and evaluating the solution.

Explanation:

In order to solve a problem managers should follow logical steps to solve it correctly. First, the problem needs to be defined and all the possible ways in which the problem could be resolved should be listed. Then, the solutions should be analyzed to determine which one is the best one for the specific case. After that, it should be implemented properly and the last step will be to evaluate the solution to get feedback and determine if it fixed the problem or if another solution will need to be found to deal with it.

4 0
3 years ago
The following totals for the month of June were taken from the payroll register of Ford Company. Salaries and wages $40,000 FICA
disa [49]

Answer:

Debit to Salaries and Wages Expense for $40,000

Explanation:

Based on the information given we were told that Salaries and wages was the amount of $40,000 which means that The Appropriate journal entry to record the monthly payroll on June 30 would include a DEBIT TO SALARIES AND WAGES EXPENSE FOR $40,000

Debit to Salaries and Wages Expense for $40,000

(To record monthly payroll)

7 0
3 years ago
Rainbow Co. began operations in 2019 and reported $600,000 in income before income taxes for the year. Rainbow’s 2019 tax deprec
cricket20 [7]

Answer:

30.000

Explanation:

Income before taxes  $300,000

Timing difference between books and Tax (A) $100,000

Permanent difference cannot be considered for calculation of Differed tax liability or Deferred tax asset $40,000 (B)  is zero

Total Timing deference (C=A+B)  $100,000

Tax rate enacted for future (D)  30%

<h2>Differed tax liability (C*D)  $30,000 </h2>

<h2></h2>

4 0
3 years ago
Which is the best way to avoid market risks?
hjlf

Not trying to sale to the wrong company or risking on a single product of some sort.
3 0
3 years ago
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