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Alika [10]
3 years ago
5

Consider the expectations theory of the term structure of interest rates. If the yield curve is downward-sloping, this indicates

that investors expect short-term interest rates to __________ in the future.
Business
1 answer:
Ksivusya [100]3 years ago
3 0

Answer:

The answer is decrease

Explanation:

Yield curve is a line that plot interest rate against its maturity. Interest rate is on the vertical axis while maturity date is on the horizontal axis.

The slope of the yield curve tells us direction of future short-term interest rates. An upward sloping curve tells us that the investors expect an increase in future interest rates while downward sloping curve indicates expectations of a decrease in interest rates in the future.

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4 years ago
An investment of $10,000 today is estimated to return $11,500 a year from now. The $11,500 is called the ________ of the investm
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3 years ago
Bond prices and yields Assume that the Financial Management Corporation’s
abruzzese [7]

$1,000-par-value bond had a 5.700%

Current price quote of 97.708

Yield to maturity (YTM) of 6.034%.

A.What was the dollar price of the bond?

Dollar price of bond = Par-value bond x Price of quote

$1,000 x 0.97708= $977.08

b.What is the bond’s current yield?

Current Yield = discount (or coupon) x par-value)/Dollar price of bond

= (0.057000 x $1,000)=57

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C.Is the bond selling at par, at a discount, or at a premium? Why?

The reason been that the bond is selling at discount due to the fact that the coupon is lower than both the current yield and yield to maturity (YTM).

d.Compare the bond’s current yield calculated in part b to its YTM and explain why they differ?

The bond’s current yield in part (b ) is lower because the coupon is so high. If the discount were lower, then the current yield would be close to or the same as the YTM.

8 0
4 years ago
whta typically happens to nonfarm payrolls the PMI indicator,and housing starts at the onset of a recession in the united states
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If a recession in the United States were to start, all economic activity would start to slow down. This would show the PMI (purchasing managers' index) indicator slopping downward because items aren't being purchased at a fast paced rate. Housing starts are new construction builds that start each month, again, in a recession economic growth would slow so construction work would as well. A confirm payroll is statistically showing those who work in the economy except for: government, private business owners in home, nonprofit or farm workers. 
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4 years ago
A work group _______ may be defined as a standard that is shared by group members and that regulates member behavior within an o
Ludmilka [50]

A work group norms can be defined as a standard shared by the group's members and which regulates the behavior of the members within an organization.

<h3 /><h3>What is the relevance of a company's norms and policies?</h3>

They are instruments that direct the behavior of employees, providing the set of values, attitudes and rules that must be followed in the work environment so that processes flow correctly and create an organizational culture favorable to cooperation and development.

Therefore, norms help in the standardization of organizational actions, generating the regulation and control of the behavior of the members of a company.

Find out more about organizational norms here:

brainly.com/question/26965722

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