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klasskru [66]
4 years ago
13

5-year Treasury bonds yield 5%. The inflation premium (IP) is 1.9%, and the maturity risk premium (MRP) on 5-year bonds is 0.4%.

What is the real risk-free rate, r*?
Mathematics
1 answer:
Eddi Din [679]4 years ago
3 0

Answer:

real risk-free rate = 2.7 %

Step-by-step explanation:

Given data

Treasury bonds yield r  = 5%

time = 5 year

(IP) = 1.9%

MRP = 0.4%

to find out

real risk-free rate r*

solution

we will find real risk-free rate r* by the given formula that is

Treasury bonds yield = real risk-free rate + IP + MRP + default risk premium + liquidity premium

so here default risk premium and liquidity premium both are zero

put all the other value we get real risk-free rate

real risk-free rate = 5% - 1.9 % - 0.4%

real risk-free rate = 2.7 %

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Very buys a basket of mangoes that is priced $14 before tax. ​ ​The sales tax is 6%. ​ ​What is the total price Avery pays for t
igor_vitrenko [27]

Answer:

Avery needs to pay $14.84

Step-by-step explanation:

When there's a tax we need to sum the original value of the product with the tax's value. To find the amount of money Avery needs to pay in taxes we can apply a rule of three as shown below:

\frac{14}{x} = \frac{100}{6} \frac{\%}{\%}

Where "x" is the tax value, and $14 represents 100%, since it's the value used to calculate the tax. We have:

x = \frac{14*6}{100}\\x = \frac{84}{100}\\x = 0.84

The value to be paid is the product value plus the tax, therefore:

\text{paid} = 14 + 0.84 = 14.84

Avery needs to pay $14.84

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3 years ago
If a tuning fork vibrates at 120 times per second, how long does it take for 1 vibration?​
SVEN [57.7K]

Answer:

120÷1

Step-by-step explanation:

it would be 120 milla secounds

5 0
3 years ago
Given a line segment A(16, 8) and B(1, 3) what are the coordinates or the line segment partitioned two-fifths from A to B.
Shalnov [3]
Partitioning means to find the dividing point between two points.
This is done by prorating the difference in x- and y-coordinates, and adding to the first.

We will take the first point (from A to B) as A(16,8).
The difference is B-A, i.e.
(1,3)-(16,8) = (-15,-5)
2/5 of the difference is (2/5)*(-15,-5) = (-6,-2)
Add the difference to the first coordinates (point A) gives
Point of division = (16,8)+(-6,-2) = (16-6, 8-2) = (10,6)


7 0
3 years ago
What is the parent function of the following function?<br> f(x) = 3(5)*
Vlad [161]
I think it’s 15 f(x) 15
7 0
3 years ago
What is the constant of propotionality in the equation 3y=2x?
liq [111]

Answer:

<em>k=2/3</em>

we know that

A relationship between two variables, x, and y, represent a proportional variation if it can be expressed in the form  <em>y/x = k or y = kx</em>

In this problem we have <em>3y = 2x</em>

Isolate the variable y

Divide by 3 both sides

<em>y = 2/3x</em>

Remember that

In a proportional relationship the constant of proportionality k is equal to the slope m of the line

The slope of the line m is

<em>m = 2/3</em>

therefore

The constant of proportionality k is

<em>k = 2/3</em>

<em>I hope this helped have a wonderful day/night ! <3 </em><em>(depends what time it is)</em>

4 0
4 years ago
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