Maturity risk for 3 year Treasury security is 0.1%
<u>Explanation:</u>
Given -
Rate of 3 year Treasury security, R3 = 7%
Rate of 6 year Treasury security, R6 = 6.2%
Rate of inflation, Ri = 2.25% next year, 2.5% on 2nd year, 2.5% on 3rd year
Real interest rate, Rint = 4.4%
Maturity risk on 3 year Treasury security, x = ?
Maturity risk for 3 year Treasury security:
R3 = Ri on 3rd year + Rint + x
7% = 2.5% + 4.4% + x
x = 0.1%
Therefore, Maturity risk for 3 year Treasury security is 0.1%
To reach percentage, you just have to move the decimal two times to the right. Doing that to 0.12 leaves us with 12, which is the answer.
Answer:
3x+15
Step-by-step explanation:
When it says "the sum of a number three times", it means 3x, because the x stands for multiplication and the problem says the sum sum is between 3x and the number 15. So your equation is 3x+15. Hope this helps ;)
