Answer: 7.24%
Explanation:
From the question, we are told that:
3 years treasury securities have an interest rate = 1.92%
10 years treasury security has an interest rate = 5.62%
Let the 7 year treasury security interest in 3 years be represented by z.
Based on the expectation theory
( 1+1.92%)^3 × (1 + z%)^7 = (1 + 5.62%)^10
(1+0.0192)^3 × (1 + z%)^7 = (1 + 0.0562)^10
(1.0192)^3 (1 + z%)^7 = (1.0562)^10
1.05871(1 + z%)^7 = 1.72767
Divide both side by 1.05871
(1 + z%)^7 = 1.72767/1.05871
(1 + z%)^7= 1.6319
1 + z% = 1.6319^1/7
1 + z% = 1.6319^0.1429
1 + z% = 1.0724
z% = 1.0724 - 1
z% = 0.0724
We then convert the decimal to percentage
z = 7.24%
The market believes that 7-year Treasury securities will be yielding 7.24% in 3 years .
I would say your answer is A.
Glad I could help, and good luck!
Answer:
video game
Explanation:
because I don't go outside, I'm a gamer
Answer:
b. Debt ratio
Explanation:
The liquidity ratio includes the current ratio, quick ratio, etc
where,
Current ratio = Total Current assets ÷ total current liabilities
And, Quick ratio = Quick assets ÷ total current liabilities
where,
Quick assets = Cash and cash equivalents + short-term investments + Accounts receivable (net)
These two ratios check the liquidity of the business organization whereas debt ratio shows a relationship between the total liabilities and the total assets. It checks the leverage of the firm whether it is capable to repay the borrowed amount or not
Hence, option b is correct
Answer:
The answer is: A) Is the law rationally related to a legitimate government interest?
Explanation:
A legitimate government interest applies when a government (in this case municipal government) passes a law to protect the health, safety, and economy of it's citizens.
This law will probably be reviewed using a rational basis, which is the least strict type of legal scrutiny.
