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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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aalyn [17]
I think the most appropriate answer would be B.


I hope it helped you!
8 0
3 years ago
In a brainstorming session for a new drug to lower cholesterol, the members of the marketing department agreed the benefits of t
tiny-mole [99]

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It is the way of turning or transforming ideas into communication by using a channel that could be texts, phone calls or even in-person conferences. In this case, the marketing department decides to encode an ad campaign to the market so as to promote the new drug for lowering cholesterol.

8 0
3 years ago
Appellate courts do not have to hear all of the cases they are presented.<br> True<br> False
frutty [35]
It's false! They have to hear all of them
5 0
3 years ago
At many amusement parks, customers who enter the park after 4 p.m. receive a steep discount on the price they pay. This is a typ
Roman55 [17]

Answer:

The answer is b) people who have a more inelastic demand for amusement parks.

Explanation:

For this price discrimination strategy, amusement parks are aiming at people who are more willing to come to the amusement park to spend more hours at the park and does not care about entry price as much as other people who are not normally willing to visit the park; instead, may be take a try for one or two hours at the end of the day at deep discounted price.

So, high price will be charged to people less care about entry price, in other works their demand for the amusement parks is relatively more inelastic to other people.

Thus, b is the right choice.

8 0
3 years ago
New items developed for automobiles in the 1997 model year included a safer air bag, which, unlike previous air bags, eliminated
Debora [2.8K]

Answer:

(E) inflated to make

Explanation:

There is a grammatical error, in the sentence as for the words:

inflated, and making the words inflated to make shall be replaced in order to correct the error.

As the event discussed is related to the past that is already it happened that the bag got inflated to make the passenger who is already terrified think, that the car is on fire.

There is a new innovation to correct the past event, where the inflation of bag is related to making the person terrified, and are not two separate transactions, that shall be reported in different phrases.

3 0
3 years ago
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