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
My name is Ann [436]
3 years ago
13

Treasury spot interest rates are as follows: Maturity (years) 1 2 3 4 Spot rate (EAR) 1.4% 2.8% 3.6% 4.5% What is the price of a

risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)? (answer,0+ decimals)
Business
1 answer:
Salsk061 [2.6K]3 years ago
8 0

Answer: $868

Explanation:

Given the following :

Maturity (years) - - - - - - 1 - - 2 - - - 3 - - - 4

Spot rate (EAR) - - - - 1.4% - 2.8% - 3.6% - - 4.5%

What is the price of a risk-free zero-coupon bond with 3 years to maturity and a face value of $1,000 (in $)?

Face value / ( 1 + spot rate)^p+1

Where P = year

=1000/(1+3.6%)^4

1000 / ( 1 + 0.036)^4

1000/(1.036)^4

1000/1.151964303616

=$868.08245

You might be interested in
If a store sells a good at the market price, even though the government authorities have set the minimum price that can be charg
Alexandra [31]

Answer:

The correct answer would be option D, Legal Market for a market price that is lower.

Explanation:

If there is a store which sells the goods at the market price even though the government authorities have set the minimum price that can be charged, it means store is selling the product at a price which is higher than the minimum price set by the government, but it doesn't mean that the store owner is doing any illegal trading. This is because the government has set the lower price limit but that ceiling price is non binding. It is not necessary for the market sellers to sell at the price given by government. So they are operating in a legal market for a market price that is lower.

4 0
3 years ago
Although some gains have been made in reducing the rate of malnourishment in some lower-income nations, about __________ people
ValentinkaMS [17]

Answer:

1 billion

Explanation:

According to the World bank, about 1 billion people are malnourished around the world despite its efforts to reduce the rate of malnourishment in some lower-income nations. A larger percentage of this 1 billion malnourished people are in the Asian and Pacific continents; rather large percentage of about 60-65 percent.

I hope this helps.

6 0
3 years ago
Interest is:
Rufina [12.5K]
Hey there,

The word (interest) is when you borrow money but there is a little more money you have to add because of the fact that you took there money. So it is basically a charge on your self because you borrowed, they also need to make profit.

Your correct answer would be <span>a charge for the convenience of accessing money stored in your bank account.</span>
4 0
3 years ago
Read 2 more answers
Meng Co. maintains a $300 petty cash fund. On January 31, the fund is replenished. The accumulated receipts on that date represe
Alona [7]

Answer: The correct answer is e) $32.

Explanation:

Petty cash fund. $300

Office supplies. (80)

Merchandise inventory. (160)

Miscellaneous expenses. (20)

Cash shortage. (8)

Balance in petty cash. $32

In terms of accounting entries,

Debit Office supplies. $80

Debit Merchandise inventory. $160

Debit Miscellaneous expenses. $20

Debit Cash shortage. $8

Credit Petty cash refund. $268

In the above entries, $268 would be refunded to petty cash fund to reinstate it to $300.

3 0
3 years ago
Economics
nignag [31]

Answer:

it would be harder to get electricinans because it costs more

Explanation:

6 0
3 years ago
Read 2 more answers
Other questions:
  • If you are accused of a criminal act, you can substantially lower your legal costs by _____.
    12·2 answers
  • As a novice investor, Laura is concerned about fees. She has heard stories of investors who have lost thousands of dollars in fe
    13·1 answer
  • How can producers make the most profit? Check all that apply.
    12·1 answer
  • What action is most likely to result in an increase in the money supply
    13·1 answer
  • Doug and Sue Click file a joint tax return and decide to itemize their deductions. The Clicks' income for the year consists of $
    5·1 answer
  • Walkane Juices is planning to launch a line of flavored beverages. It encourages consumers to take a $1,000,000 Taste Challenge.
    15·1 answer
  • You have just made your first $4,400 contribution to your retirement account. Assume you earn a return of 13 percent per year an
    9·1 answer
  • Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of the year, her accountan
    14·1 answer
  • Todays electronics specializes in manufacturing modern electronic components. It also builds the equipment that produces the com
    12·1 answer
  • If the tax multiplier is 1. 5 and a $200 billion tax increase is implemented, what is the change in gdp, holding all else consta
    11·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!