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
Murljashka [212]
3 years ago
7

A one-year and two-year bonds currently pays 1.4% and 1.2%, respectively. What is the expected interest rate on a one-year bond

next year according to the liquidity premium theory if the two-year term premium is 0.1%
Business
1 answer:
yulyashka [42]3 years ago
5 0

Answer:

Expected Interest Rate = 1.8%

Explanation:

The computation of the expected interest rate on a one year bond is shown below

Interest Rate expected in nth year would be

= (Sum of individual interest rates in n years) ÷ n + liquidity premium in nth year

1.6% = (1.2% + Expected Interest Rate) ÷ 2 + 0.1%

1.5% × 2 - 1.2%= Expected Interest Rate

Expected Interest Rate = 1.8%

You might be interested in
Webster Corporation's monthly projected general and administrative expenses include $4,500 administrative salaries, $1,900 of ot
zhannawk [14.2K]

Answer:

$8,500

Explanation:

Total budgeted general and administrative expenses are the compulsory daily cost expended to ensure that a company's operations is maintained irrespective of whether the company is making profit or not.

Examples of general and administrative expense includes rent, utility bill, insurance, depreciation of office furniture, insurance and wages etc.

Therefore,

Total budgeted general and administrative expenses budgeted per month = Administrative salaries + Other cash administrative expenses + Depreciation

= $4,500 + $1,900 + $2,100

= $8,500

8 0
3 years ago
__________ is the value or want-satisfying ability that is added to products by organizations that make the product more useful
stiv31 [10]

Answer:

Utility

Explanation:

Utility is the value or want-satisfying ability that is added to products by organizations that make the product more useful or accessible to consumers.

Utility is a term in economics that refers to the total satisfaction received from consuming a good or service. Economic theories based on rational choice usually assume that consumers will strive to maximize their utility. The economic utility of a good or service is important to understand, because it directly influences the demand, and therefore price, of that good or service. In practice, a consumer's utility is impossible to measure and quantify. However, some economists believe that they can indirectly estimate what is the utility for an economic good or service by employing various models.

7 0
3 years ago
What is considered a want rather than a need for most people
garri49 [273]

Answer:

sometimes it depends on the person

like electronics some people want it but some people need it

Explanation:

hope this helps :)

support by marking brainliest please

6 0
3 years ago
Read 2 more answers
Broadway Corporation was granted a patent on a product on January 1, 2007. To protect its patent, the corporation purchased on J
Karolina [17]

Answer

The answer and procedures of the exercise are attached in image.

Explanation  

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.  

4 0
3 years ago
Reagan Corp. acquired one hundred percent of Ford Inc. on January 1, 2016, at a price in excess of the subsidiary's fair value.
Artyom0805 [142]

Answer:

B. $497,000

Explanation:

           Consolidated Balance of Equipment

Excess value at the acquisition                  $110,000

($350,000-$240000)

Book value as on Dec 31 2018 of Ford      $170,000

Book value as on Dec 31 2018 of Regent  $250,000

Less: excess depreciation                          <u>-$33,000  </u> ($110,000/10*3)

Consolidated balance of equipment        <u>$497,000</u>

3 0
3 years ago
Other questions:
  • A company uses income from continuing operations to determine whether potentialcommon stock is dilutive or antidilutive, and thi
    8·1 answer
  • How does recycling help bridge the gap between renewable and nonrenewable resources
    5·1 answer
  • Which market segment criteria refers to the fact that segments must be large enough for the firm to make a profit by serving the
    10·1 answer
  • The operations vice president is adjusting the production quantities for the upcoming month of March for the coal company. Last
    15·1 answer
  • Which of the following most clearly reveals the relationship between the target market strategy of a service and its distributio
    12·1 answer
  • A company's prime costs total $5,200,000 and its conversion costs total $9,200,000. if direct materials are $2,100,000 and facto
    8·1 answer
  • The one-year forward rate of the British pound is quoted at $1.60, and the spot rate of the British pound is quoted at $1.63. Is
    7·1 answer
  • A homeowner in a sunny climate has the opportunity to install a solar water heater in his home for a cost of $2,481. After insta
    6·1 answer
  • Define quality in terms of exceptional ​
    6·1 answer
  • What is important to consider about a facility for a business?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!