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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%

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The Securities Investor Protection Corporation is a government agency charged with administering the liquidation of failed secur
deff fn [24]

Answer:

False

Explanation:

First of all, the Securities Investor Protection Corporation is not a government agency. The S.I.P.C was formed in 1970 under the Securities Investor Protection Act as a non-profit membership corporation.

In the unfortunate event that a securities firm fails (which is rather unlikely), the S.I.P.C steps in to help the investor. It can help by either transferring the accounts of the failed firm to a different firm or by liquidation.

4 0
3 years ago
a manager's reluctance to delegate, as seen in the video, relates to which of the four management functions?
Misha Larkins [42]

A manager's reluctance to delegate, as seen in the video influencing relates to the management function.

What's delegate in a sentence?

If you delegate duties, obligations, or strength to a person, you deliver them those responsibilities or responsibilities or that strength, in order to act in your behalf. He desires to delegate extra obligations to his employees.

What is an instance of a delegate?

An example of delegate is while you tell a person to get your mail for you. The definition of a delegate is a consultant authorized to speak or act for others. An instance of a delegate is a baby-kisser who speaks on behalf of a group of people. One who acts on behalf of one or greater others in an authentic capability.

How do you delegate personnel?

Each assignment you delegate to a person else should include clear direction and context. allow the employee realize why they may be being assigned the undertaking and the way the project will benefit the general challenge or company. Make time to reply any questions and provide feedback while necessary.

Learn more about delegate here:- brainly.com/question/14155844

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6 0
2 years ago
A company is considering investing in a new machine that requires a cash payment of $38,198 today. The machine will generate ann
PolarNik [594]

Answer:

Internal rate of return = 12%

Explanation:

Below is the calculation of internal rate of return:

The new machine requires cash payment = $38198

Annual cash flows = $15904

Time period = 3 years

First divide the cash payment with the annual cash flow and then look at the factor table to find the interest rate at 3rd year.

Factor = 38198 / 15904 = 2.40

Now look the value 2.40 in the table:

Thus Internal rate of return = 12%

6 0
3 years ago
In exchange for manufactured goods, Native Americans in the West often traded sheep. Cattle. Furs. Guns.
Olenka [21]

The correct statement is that the Native Americans used to exchange furs for manufactured goods. Such practice of goods in exchange for goods is known as barter system. So, the correct option is C.

Barter system is one of the oldest form of trade and exchange system that has been in existence even before the invention of currency for the purpose of exchange.

<h3>Barter System</h3>

  • The barter system refers to as a system under which goods and commodities are traded for the exchange of excess goods and commodities.

  • The barter system has its own discrepancies and faults as there was no specific medium of exchange and this necessity led to the invention of currency notes and coins.

  • The Native Americans were mostly Indians and carried hunting of animals and hence the furs obtained from animals was in excess with them and as a result, it was exchanged for finished goods.

Hence, the correct option is C that the Native Americans used furs for the exchange of manufactured goods during the days of barter exchange system.

Learn more about barter system here:

brainly.com/question/1888121

4 0
3 years ago
Please help me thankssss !!!!
fredd [130]

Answer:

Money owing to bank, Motor Van, Stock of goods

Explanation:

7 0
3 years ago
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