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
lord [1]
4 years ago
8

If the expected path of 1-year interest rates over the next five years is 2 percent, 4 percent, 1 percent, 4 percent, and 3 perc

ent, the expectations theory predicts that the bond with the lowest interest rate today is the one with a maturity of
A) one year.
B) two years.
C) three years.
D) four years.
Business
1 answer:
timofeeve [1]4 years ago
6 0

Answer:A) one year

Explanation: The unbiased expectations theory, also known as the expectation theory aims to estimate how much the short term interest rates will amount to in future. This is based on long term interest rates. Forward rates are used to predict the value of interests in the future based on the values calculated today. A maturity of 1 year has the lowest interest rate because it is not given enough time to grow. Interest rates tend to grow better over a longer period of time. Therefore in terms of expectation theory the longer the maturity the better the chances of interest rate growth.

You might be interested in
Bạn chọn yếu tố nào để định vị bản thân trong tương lai, góp phần nâng cao khả năng tìm kiếm việc làm? Trình bày kế hoạch để thà
kap26 [50]

Answer:

quan trọng bản thân thật sự thích cái gì và học chuyên môn về cái mình thíc

Explanation:

3 0
3 years ago
Piscataway National Bank pays compound interest on savings accounts, but at different rates depending on the amount of the accou
Natasha2012 [34]

Answer:

It will take 4.2 years

Explanation:

The amount due in the future when a sum of money is invested at a particular interest rate for certain number of years is called Future or compound value.

To calculate the compound value, we use the formula below:

FV = PV * (1+r)^n

FV- future value, PV - Present value, r - interest rate, n - number of years

In this question,

FV - 15,000, PV- 5000, r -3%, n- ?

Substituting this value we have:

15,000 = 5000 × (1+0.03)^n

15000 = 5000 ×  1.03^n

1.03^n = 15,000/5000

1.03^n = 3

log 1.03^n = Log 3

n = Log 3/log 1.03

n = 4.18735

It will take about 4.2 years for the account to reach $15,000

3 0
3 years ago
The difference between who you
Aleksandr [31]

Answer:

a quote is the authors exact words

Explanation:

7 0
3 years ago
Employee involvement and participation (eip) management is a method of management where ________.
Grace [21]
It's a method where <span>subordinates share a significant degree of decision-making power with their immediate superiors
One positive benefit of the employee involvement and participation is that companies will prepare more employees to understand the company's operational method and make more potential leaders for the company if it choose to expand in the future</span>
6 0
3 years ago
Wha Companies use relationship marketing to build and maintain relationships with their _______________. *
Elena-2011 [213]

Answer:

customers.

Explanation:

Marketing mix can be defined as the choices about product attributes, pricing, distribution, and communication strategy that a company blends and offer its targeted markets (customers) so as to build and maintain a desired response.

Generally, a marketing mix is made up of the four (4) Ps;

1. Products: this is typically the goods and services that gives satisfaction to the customer's needs and wants. They are either tangible or intangible items.

2. Price: this represents the amount of money a customer buying goods and services are willing to pay for it.

3. Place: this represents the areas of distribution of these goods and services for easier access by the potential customers.

4. Promotions: for a good sales record or in order to increase the number of people buying a product and taking services, it is very important to have a good marketing communication such as advertising, sales promotion, direct marketing etc.

One of the importance associated with good marketing communication (relationship marketing) is that, it improves the image of a business firm. A business firm with a good company reputation or prestige for the sales and production of quality products with an excellent customer relationship can easily introduce new products into the market at a high price without limitations.

Hence, companies use relationship marketing to build and maintain relationships with their customers.

8 0
3 years ago
Other questions:
  • Policymakers focus on marginal tax rates changes when making changes in the tax code because the marginal tax rate:_____
    11·1 answer
  • In an early U.S. Supreme Court interpretation of the commerce clause, the Court ruled that _______ could regulate labor relation
    12·1 answer
  • The principal functions of management are ___.
    15·1 answer
  • If GDP is $12,000 and velocity is 4, the money supply is
    8·1 answer
  • Which of the following terms is correct?
    15·1 answer
  • Buyers should consider and regard a supplier as a:
    15·1 answer
  • Which of the following possible provisions of a bond indenture is designed to ease the burden of principal repayment by spreadin
    15·1 answer
  • One of the three basic questions an economy has to face iswhere goods and services will be produced. True or False: Under market
    13·1 answer
  • Onslow Co. purchases a used machine for $192,000 cash on January 2 and readies it for use the next day at an $8,000 cost. On Jan
    13·1 answer
  • On December 31, after adjustments, Gonzalez Company's ledger contains the following account balances: 101 Cash $ 27,200 Dr. 111
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!