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marissa [1.9K]
3 years ago
5

The yield on a one-year bond is currently 3% and the expected yield on one-year bonds for the next two years is 5% and 4%. If th

e liquidity premium is 1.75%, what is the yield on a bond with three years to maturity
Business
1 answer:
sveticcg [70]3 years ago
4 0

Answer:

5.75%

Explanation:

The computation of the  yield on a bond with three years to maturity is shown below:

Given that

Yield on a one-year bond is 3%

The expected yield on one-year bonds for the next two years is 5% and 4%

And, the liquidity premium is 1.75%

So, the yield on a bond with three years to maturity is

= (3% + 5% + 4%) ÷ 3 years + 1.75%

= 4% + 1.75%

= 5.75%

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Lubov Fominskaja [6]

Answer:

forced distribution

Explanation:

Based on the rest of the sentence it can be said that the missing term is forced distribution. This is a system that requires managers to evaluate each individual and rank them typically into one of three categories. These categories are excellent, good, and poor and allow managers to indicate if the employee should be terminated, is doing good, or is in-line for promotion as indicated in the graph below. This term is also known as the vitality curve or bell curve.

4 0
2 years ago
I need this done by today
tankabanditka [31]
What is the problem
4 0
3 years ago
Find an equation of the line slope 2/3; through (-6,3)
Minchanka [31]
If you are given a point and the slope, use the point-slope formula.
m = 2/3
(x₁, y₁) = (-6, 3)

y - y₁ = m(x - x₁)

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y - 3 = 2/3x + 12/3
y - 3 = 2/3x + 4
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The equation of the line is y = 2/3x + 1.

4 0
3 years ago
Palmer Corp. is considering the purchase of a new piece of equipment. The cost savings from the equipment would result in an ann
VashaNatasha [74]

Answer:

So, accounting rate of return = 33 %

Explanation:

given data

net income after tax = $179,850

initial cost = $545,000

time = 7 year

salvage value = $34,000

we will get here  the accounting rate of return

solution

as we know that accounting rate of return is express as

accounting rate of return = Net income ÷ initial investment    .................1

put here value and we get

accounting rate of return = \frac{179850}{545000}  

So, accounting rate of return = 33 %

7 0
2 years ago
When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the _______________
Blababa [14]

Answer:

opportunity cost

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When a firm uses retained profits to invest in more energy efficient equipment, an economist would calculate the opportunity cost of investing in physical capital.

6 0
2 years ago
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