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Alekssandra [29.7K]
3 years ago
9

You are considering an investment in 30-year bonds issued by Moore Corporation The bonds have no special covenants. The Wall Str

eet ournal reports that one-year T-bills are currently earning 3.55 percent Your broker has determined the following information about economic activity and Moore Corporation bonds 50Real interest rate 2.75 percent Default risk premium-1.05 percent Liquidity risk premium 0.50 percent Maturity risk premium 1.85 percent What is the inflation premium?
Business
1 answer:
Svetllana [295]3 years ago
6 0

Answer:

0.8%

Explanation:

Moore Corporation

T-bills are currently earning 3.55 %

Less Real interest rate 2.75%

Inflation premium 0.8%

Or

Expected IP = i - RFR = 3.55% - 2.75% = 0.8%

Therefore the inflation premium is 0.8%

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Answer:

Option (a) is correct.

Explanation:

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3 years ago
As a graphic artist, Randy has just finished a new calendar. The calendar cost him $1.00 for the glossy paper, $3.00 for the six
Yanka [14]

Answer:

Break-even units = 66.67 units

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<em>Break-even point is the level of activity that achieves no profit or loss. At this level profit is zero because the the total revenue is equal to total cost.</em>

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<em>Units to achieve target profit = (Total general fixed cost for the period + target profit)/ contribution per unit</em>

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3 years ago
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3 years ago
A-Plus Linens sent the following notice to John C. Lincoln Hospital: "We'll pay you. Drop your current linen service and we'll g
ehidna [41]

Answer:The answer is a

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