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lbvjy [14]
3 years ago
8

When the interest rate on a bond is above the equilibrium interest rate, there is excess __________ in the bond market and the i

nterest rate will __________. question 4 options: demand; rise demand; fall supply; fall supply; rise?
Business
1 answer:
Kruka [31]3 years ago
4 0
"... there is excess supply of bonds... interest rate will fall."
When the interest rate is above equilibrium, Qd (Quantity demanded) will be less than Qs (Quantity supplied) of bonds, since people are less willing to purchase when price is too high, and producers are more willing to sell their bonds when price is higher (since they earn more per unit sold). This results in surplus of bonds in the market, where Qs > Qd, which leads to a downward pressure being applied on price (in this case, the interest rate) so that Qs eventually equals to Qd.

Hope this helps!
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One-year Treasury securities yield 4.15%. The market anticipates that 1 year from now, 1-year Treasury securities will yield 4.4
mario62 [17]

Answer:

The yield today for 2-year Treasury securities is 4.27%

Explanation:

In order to calculate the yield today for 2-year Treasury securities we would have to calculate the following formula:

2-year treasury yield = [(1 + 1-yr treasury yield) * (1 + 1-yr treasury yield, 1 year from now)]1/2 - 1

= [(1 + 0.0415) * (1 + 0.044)]∧1/2 - 1

= [1.0873]∧0.5 - 1

= 1.0427 - 1 = 0.0427, or 4.27%

The yield today for 2-year Treasury securities is 4.27%

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Summarize the primary characteristics of an effective internal control system for cash.
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Internal control is a procedure for ensuring that an organization's objectives in operational effectiveness and efficiency, accurate financial reporting, and compliance with laws, rules, and policies are met, according to the definitions of accounting and auditing.

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Based on the international trade concept, comparative advantage is the ability to produce goods at a cheaper cost than competitors, and it is important in international trade because it enhances resource allocation.

<h3>What is Comparative Advantage?</h3>

Comparative advantage is a term that is used to describe the country's capacity to manufacture a specific good or service at a lower opportunity cost than its trading partners.

Usually, Comparative advantage is utilized to explain why companies, countries, or individuals can profit from the trade.

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