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Musya8 [376]
3 years ago
10

Assuming that the term structure of interest rates is determined as posited by the pure expectations theory, which of the follow

ing statements is CORRECT? a. Inflation is expected to be zero. b. Consumer prices as measured by an index of inflation are expected to rise at a constant rate. c. The maturity risk premium is assumed to be zero. d. In equilibrium, long-term rates must be equal to short-term rates. e. An upward-sloping yield curve implies that future short-term rates are expected to decline.
Business
1 answer:
Sidana [21]3 years ago
8 0

Answer:

c. The maturity risk premium is assumed to be zero.

Explanation:

In the case when the term structure of the rate of interest would be measured via the pure expectations theory so here the maturity risk premium would be zero as under this theory it is assumed that the risk premium i.e. of the long term would be equivalent to the zero

Therefore the option c is correct

And, the rest of the options seems wrong

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A market for existing financial securities that are currently traded among investors is called the ________ market. super fundam
Nadya [2.5K]

A market for existing financial securities that are currently traded among investors is called the Secondary market.

A secondary market is a market for the purchase and sale of existing securities or other assets. They differ from primary markets, where the assets were created. Generally, most investors will only trade on secondary markets.

Transactions in the secondary market are undertaken with other investors rather than the security issuer. The procedure is comparable to buying products from the classifieds or a used car from a dealership rather than the manufacturer.

Stocks and bonds purchased in a retirement plan or through a brokerage account, for example, are traded on secondary markets.

Assume you have two portfolios: one through an employee stock ownership plan and the other through a discount brokerage. The main market transaction occurs when you purchase stock directly from the corporation, like in the first plan. It is a secondary market transaction when you buy in a discount brokerage account through stock exchanges.

Learn more about Secondary Markets here:

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8 0
2 years ago
You manage the worksheet shown below and it contains information for the company's 1500 employees,
marshall27 [118]

The best way for you to create the list of those who make more than $45000 a year and are full time is by using the filter option.

The filter option would be used to highlight the people that are in full employment. After this you have to use the sort to check the compensation column in order to establish those that make more than 45000.

The filter in a spreadsheet helps to put data in a particular category then arrange them based on the criteria that you selected.

The sorting method helps to arrange data based on ascending order or descending order.

Read more on brainly.com/question/15358155?referrer=searchResults

5 0
3 years ago
Read 2 more answers
Eight years ago, Bravo Company purchased land for $170, 000. The current fair market value of the land is $421,000. The rate of
victus00 [196]

Answer: $170,000

Explanation:

According to the historical cost concept, the original cost value of a asset (i.e. land) should be recorded in the books. The original cost refers to the cost of a asset at the time of purchasing. As per the principle of historical cost, assets are always recorded as a original cost or historical cost or acquisition cost.

But when a person sold the asset then he will consider the fair market value.

4 0
3 years ago
A supervisor has to make travel reservations for a number of delegates attending an international conference on trade and commer
Kazeer [188]

Answer:

Laissez-faire

Explanation:

A non-authoritarian leadership style. Laissez faire leaders try to give the least possible guidance to subordinates, and try to achieve control through less obvious means. They believe that people excel when they are left alone to respond to their responsibilities and obligations in their own ways

4 0
4 years ago
Edgar owns 234 shares of Cawh Consolidated Bank, which he bought for $21.38 apiece. Each share pays a yearly dividend of $3.15.
Nataliya [291]

Answer:

The stocks yields 14.73% per year

the bonds yields 7.89% per year

The stock provide a better yield, which is 6.84% greater than bonds yield

Explanation:

the return will be calculate as follow:

return/ investment cost

<u>stocks</u>

return 3.15 dividends

cost 21.38 each stock

yield:

3.15 / 21.38 = 0,14733395 = 14.73%

<u></u>

<u>bonds</u>

return: cuopon payment 1,000 x 8.3% = 83

cost : market value 1,000 x 105.166/100 = 1,051.66‬

yield:

83/1051.66 = 0,07892284 = 7.89%

<em>Difference:</em>

stocks 14.73 - bonds 7.89 = 6.84

5 0
4 years ago
Read 2 more answers
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