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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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The "inverse dependency ratio" is defined as the ratio of
Papessa [141]

Answer:

The correct answer is the option C: the working-age population to the number of dependents.

Explanation:

On one hand, the <em>dependancy ratio</em> is the name given, in the field of economics, to the term that refer to an age-population ratio that are and are not in the labor force. Moreover, this type of ratio focuses in measuring the pressure that the productive population has over the nonproductive population.

On the other hand, the <em>inverse dependay ratio</em> measures the amount of labor force that has to be provided regarding one dependent person. Therefore that it is understandable that <u><em>the inverse dependency ratio is defined as the reatio of the working-age population to the number of dependents</em></u>.

6 0
3 years ago
A company estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter ov
WARRIOR [948]

Answer:

The correct answer is A.

Explanation:

Giving the following information:

A company estimates its sales at 200,000 units in the first quarter and that sales will increase by 20,000 units each quarter over the year.

They have, and desire, a 25% ending inventory of finished goods.

Production required for the third quarter:

Sales= 200,000 + 40,000= 240,000

Ending inventory desired= 260,000*0.25= 65,000

Beginning inventory= (240,000*0.25)= (60,000)

Total= 245,000

7 0
3 years ago
Shelley’s Salsa produces and sells organic salsa. Last year it sold 3 million tubs of salsa at a price of $3 per tub. For last y
Murrr4er [49]

Answer: Option B

Explanation:

A. Explicit cost are the cost paid to others in return of their service. Hence Option A is incorrect.

B. Revenue is the total amount of earnings a company have before deducting for expenses. Hence Option B is correct.

C. Accounting profit means (Revenue - explicit cost) . Hence Option C is incorrect.

D. Economic profit means (Revenue - explicit cost - implicit cost) . Hence Option  D is incorrect.

6 0
3 years ago
Every year 3 Managers are promoted to Partner level.
Sophie [7]

Answer: 2 years

Explanation:

Years of existing of the firm=30 years

Number of associates= 300,

Number of Managers= 70;

Number of partners= 30;

Total number of workers=400

Number of years  associates has been changed in last 30 year=30/5=6

Number of years  managers has been changed in last 30 year=30/3=10

Number of times for partner=x

Number of years  partners has been changed in last 30 year=30/x=15

15x=30

x=30/2

x=2 years

6 0
3 years ago
The amount of cash to be reported on the balance sheet at June 30 is the
drek231 [11]

Answer:

The answer is C.

Explanation:

It will not be proper to just choose the balance in the cash ledger or the one in the bank because the balance as per the cash ledger in the book might be different from the balance in the bank statement in the bank.

So to eliminate this differentiation, bank reconciliation needs to be done. After this reconciliation has been carefully done, the adjusted cash balance in the reconciliation will be used.

7 0
3 years ago
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