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
Zanzabum
2 years ago
12

The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years. A 2-year Treasury security yields 6.2%.

What is the maturity risk premium for the 2-year security
Business
1 answer:
den301095 [7]2 years ago
4 0

Answer:

0.2%

Explanation:

The real risk-free rate is 3%, and inflation is expected to be 3% for the next 2 years; so the risk-free rate is 6%.

The maturity risk premium is the different between return on investment and same tenor investment

= Treasury security yields 6.2% - risk free rate 6%

= 6.2% - 6% = 0.2%

You might be interested in
A Las Vegas hotel wants to provide a better experience for its rapidly growing customer base from China. The hotel can best do t
Ainat [17]

Answer:

a

Explanation:

7 0
2 years ago
Juanita has noticed that the price of bagels has gone up. Because of this, she has decided to buy a less expensive yogurt every
Monica [59]
I would say c, substitution effect as she is substituting a more expensive yogurt for a less expensive yogurt.
7 0
2 years ago
On average ___________ percent of all laptops stolen in the us are from public schools.
Genrish500 [490]
33% 
I hope this helped.
~IndexFinger :)

7 0
3 years ago
During the course of your examination of the financial statements of Trojan Corporation for the year ended December 31, 2018, yo
siniylev [52]

Answer:

$76,440

Explanation:

Calculation to determine the proper amount of net income as of December 31, 2018

Net income $87,000

Less Adjusted for insurance ($4,050)

($16,200*3/12)

Less Adjusted for deferred income ($2,700)

Less Adjusted for supplies ($2,100)

Less Adjusted for interest ($1,710)

($57,000*9%*4/12)

Net income (Adjusted) $76,440

Therefore The the proper amount of net income as of December 31, 2018 will be $76,440

4 0
2 years ago
Granite Company purchased a machine costing $120,000, terms 1/10, n/30. The machine was shipped FOB shipping point and freight c
grin007 [14]
I’m going to make this short your answer is



C. $120,100.
7 0
3 years ago
Other questions:
  • Decision Point: Employees’ Personalities You think you did a good job of matching employees to the job to get a good fit, but yo
    6·1 answer
  • Celine has an unwavering belief in her new start-up company. She possesses intense focus and takes un-conventional risks to make
    11·1 answer
  • Revenue is:
    5·2 answers
  • Carrying and using a high-end credit card like an American Express Centurion Card would satisfy needs at what level in the Maslo
    15·1 answer
  • Other things the same, a decrease in the price level causes real wealth to a. fall, interest rates to fall, and the dollar to ap
    13·1 answer
  • You interview a random sample of 50 adults. the results of the survey show that 46​% of the adults said they were more likely to
    13·1 answer
  • Portal/site/MKTG-301-30-S1-2122/tool/Acdab 156 4646-412-6727.63abf7286271/e/delivery/deliver Assessment
    15·1 answer
  • Business owner robert should use ________ schedules of reinforcement to keep his employees mentally alert and interested.
    8·1 answer
  • Which of the following actions is unlikely to help make a company's branded footwear more competitive vis-a-vis the brands of ri
    14·1 answer
  • The transformation of an organization through the revitalization of the key ideas on which it is built is known as?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!