1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
DerKrebs [107]
3 years ago
13

If Treasury bills are currently paying 6.5 percent and the inflation rate is 1.3 percent, what is the approximate and the exact

real rate of interest
Business
1 answer:
s2008m [1.1K]3 years ago
6 0

Answer:

the approximate real interest rate = nominal rate - inflation rate = 6.5% - 1.3% = 5.2%

the exact real interest rate is calculated using the following formula:

(1 + nominal interest rate) = (1 + real interest rate) (1 + expected rate of inflation)

(1 + 0.065) = (1 + real interest rate) x (1 + 0.013)

1 + real interest rate = (1 + 0.065) / (1 + 0.013) = 1.065 / 1.013 = 1.05133

real interest rate = 1.05133 - 1 = 0.05133 = 5.13%

You might be interested in
All of the following statements are correct about management by exception except it
noname [10]

Answer:

<u>means that management has to investigate every budget difference.</u>

Explanation:

  • Management has an exception as the practice f examining the financial and operational results of a business. Only bringing the issues to the attention of management when substantial differences in budgets or within the expected amount.
  • The concept assumes that business managers handle cases that derive them from the norms and have the main disadvantage of calculation mistakes that results from a large variety of data and finding errors to be consuming activity.
3 0
3 years ago
A worksheet contains sales dollars for agents with your company. The values are $1,250, $1,090, $985, $985, $880, $756, $675, $6
ivolga24 [154]

Answer:We use the Large Function. the general formula is  =LARGE(first cell:last cell,3) .Please refer to the explanation section for details

Explanation:

Let us assume

A 1 = $1,250,  A 2 = $1,090, A 3 = $985, A 4 = $985, A 5 = $880, A 6 = $756, A 7 = $675, A 78= $650, and A 9 =$600

Using the Large function on excel to return the third largest value, on the formula bar we have the following formula;

=LARGE(A1:A2,3)

7 0
3 years ago
Company X was expected to have earnings per share of $0.52 for the upcoming quarter. On the day of the results, the company repo
inn [45]

Answer:

Rise in stock price.

Explanation:

In general, the stock price has increased because the expected earning was $0.52 per share but the actual earnings were $0.83. therefore, we can say that stock prices have increased. moreover, there are other factors that may affect the stock price. But in this case. A positive surprise in the earnings per share results in stock price going up.

3 0
3 years ago
Most canadian businesses have more than five employees? True or false
erik [133]
True true true true true true true
5 0
3 years ago
The first step in developing _________ for the coffee collective would be to develop positive brand awareness and an association
leonid [27]
<span>The first step in developing brand image for the Coffee Collective would be to develop positive brand awareness and an association of the brand in consumers' minds to give the brand an identity.

Brand image refers to the image of the company that is painted in the mind of the consumer/future consumer. It is important to have positive brand awareness and that the consumer believes there is value within the brand they are going to purchase from. This is even more important when you are referring to a brand that has a lot of market competition like food, drinks, and/or coffee because there are many options, you want the consumer to pick yours. </span>
5 0
3 years ago
Other questions:
  • A company will buy 1000 units of a certain commodity in one year. It decides to hedge 80% of its exposure using futures contract
    9·1 answer
  • Karen and Mike currently insure their cars with separate companies, paying $400 and $600 a year. If they insured both cars with
    12·1 answer
  • Record journal entries for the following transactions. (a) On December 1, $18,000 was received for a service contract to be perf
    13·1 answer
  • In what ways do people cope with the problem of scarcity (5 sentence)​
    15·1 answer
  • Kela Corporation reports a net income of $450,000 that includes a depreciation expense of $70,000. Also, cash of $50,000 was bor
    12·1 answer
  • Debt analysis Springfield Bank is evaluating Creek​ Enterprises, which has requested a $ 3 comma 620 comma 000 ​loan, to assess
    6·1 answer
  • Last month Brent lost his job at the auto parts factory because his factory, like many others, relocated to Asia. Brent has been
    15·1 answer
  • An llc is formed when a general partnership files a statement of qualification with the appropriate state official. true or Fals
    13·2 answers
  • Discuss the intellectual debates by contemporary scholars surrounding issues of development​
    10·1 answer
  • Straight-Line: Amortization of bond discount LO P2 Skip to question [The following information applies to the questions displaye
    12·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!