Maturity risk for 3 year Treasury security is 0.1%
<u>Explanation:</u>
Given -
Rate of 3 year Treasury security, R3 = 7%
Rate of 6 year Treasury security, R6 = 6.2%
Rate of inflation, Ri = 2.25% next year, 2.5% on 2nd year, 2.5% on 3rd year
Real interest rate, Rint = 4.4%
Maturity risk on 3 year Treasury security, x = ?
Maturity risk for 3 year Treasury security:
R3 = Ri on 3rd year + Rint + x
7% = 2.5% + 4.4% + x
x = 0.1%
Therefore, Maturity risk for 3 year Treasury security is 0.1%
Answer:
The solution in interval notation is:
.
The solution in inequality notation is:
.
Step-by-step explanation:
I think you are asking how to solve this for 
.
Keep in mind 
.
If 
then 
.
Subtract 
on both sides:
Factor the difference of squares 
:
Simplify inside the factors:
The left hand side is a parabola that faces up. I know this because the degree is 2.
The zeros of the the parabola are at x=-6 and x=2/5.
We can solve x+6=0 and 5x-2=0 to reach that conclusion.
x+6=0
Subtract 6 on both sides:
x=-6
5x-2=0
Add 2 on both sides:
5x=2
Divide both sides by 5:
x=2/5
Since the parabola faces us and then we are looking at the interval from x=-6 to x=2/5 as our solution. That part is where the parabola is below the x-axis. We are looking for where it is below since it says the where is the parabola<0.
The solution in interval notation is:
.
The solution in inequality notation is:
.
The answer would be S+6t+2
Answer:
Answer Undefined for both of them
Step-by-step explanation:
The graph doesn't plot the y value for 2.5 or -1.5, so you have to choose answer undefined in the first box for both of them.
