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Reika [66]
3 years ago
12

Assume that the current interest rate on a one-year bond is 8 percent, the current rate on a two-year bond is 10 percent, and th

e current rate on a three-year bond is 12 percent. If the expectations theory of the term structure is correct, what is the one-year interest rate expected during Year 3? (Base your answer on an arithmetic average rather than a geometric average.)
Business
1 answer:
dimulka [17.4K]3 years ago
4 0

Answer:

16%

Explanation:

Given that,

Current interest rate on a one-year bond = 8 percent

Current rate on a two-year bond = 10 percent

Current rate on a three-year bond = 12 percent

One-year interest rate expected during Year 3:

= Current rate on a three-year bond - Current rate on a two-year bond

= (3 × 12%) - (2 × 10%)

= 36% - 20%

= 16%

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Answer:

B) induces buyers to consume less, and sellers to produce less.

Explanation:

Taxes are a necessary evil since they always increase the price of the goods and services that consumers buy and decrease the amount of money that producers receive from selling their goods and services. But taxes are necessary and unavoidable.

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Answer:

The correct option of this question is (B). Explanation of this answer is given below in the explanation section

Explanation:

(B) is Correct Option:

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Why other options are not correct

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(C) Compile and keep personnel records. Record data for each employee, such as address, weekly earnings, absences, amount of sales or production, supervisory reports on ability, and date of and a reason for termination is also a responsibility of the HRM and sales department. However, it is noted some responsibility such as employee record management is the sole responsibility of the HRM department and HRM manager. But termination of an employee, absence recording, amount of sales or production are the responsibility of other departments such as the administrative department, sales department, and marketing department, etc. However, this option is also correct in a sense only if employee management involved, otherwise, this option is not correct.

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schepotkina [342]

Answer:

Please see below.

Explanation:

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