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borishaifa [10]
2 years ago
8

The real risk-free rate is 4.00%, inflation is expected to be 6.00% this year, and the maturity risk premium is zero. Ignoring a

ny cross-product terms, i.e., if averaging is required, use the arithmetic average, what is the equilibrium rate of return on a 1-year Treasury bond
Business
1 answer:
Hoochie [10]2 years ago
3 0

The equilibrium rate of return on a 1-year Treasury bond is 10.24%.

Using this formula

T-bond yield = [(1 + Real Risk-free Rate) × (1 + Inflation Rate)] - 1

Let plug in the formula

T-bond yield= [(1 + 0.04) × (1 + 0.06)] - 1

T-bond yield=[(1.04)×(1.06)] -1

T-bond yield= 1.1024 - 1

T-bond yield= 0.1024×100

T-bond yield=10.24%

Inconclusion the equilibrium rate of return on a 1-year Treasury bond is 10.24%.

Learn more here:

brainly.com/question/13576234

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Why is job networking important
VikaD [51]
It is important because it is a way you can expand with people you know like Students, Classmates and friends. <span />
6 0
3 years ago
Creative Sound Systems sold investments, land, and its own common stock for $35 million, $14.5 million, and $39.0 million, respe
AlladinOne [14]

Answer:

The correct answer is $18.5 million.

Explanation:

According to the scenario, the computation of the given data are as follows:

we can calculate the cash flow from financing activities by using following formula:

Cash flow from financing activities = Issue of common stock - Purchase of treasury stock

By putting the value, we get

Cash flow from financing activities = $39.0 million - $20.5 million

= $18.5 million

5 0
4 years ago
A(n) _____ is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.
borishaifa [10]

A supply chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

<h3>What is a supply chain?</h3>

A Supply chain is the entire system of production.  It starts from sourcing for raw materials to delivering a product or service to an individual also known as a customer.

Therefore, a supply chain is a set of firms that make and deliver a given set of goods and services to the ultimate consumer.

For more information on the supply chain kindly check brainly.com/question/15217906

3 0
3 years ago
Journalize the entries to record the following transactions for Zentric Corporation. Refer to the Chart of Accounts for exact wo
GREYUIT [131]

Answer:

Jan 22

Dr Cash $720,000

Cr Common stock $720,000

Feb 14

Dr Cash $2,420,000

Cr Preferred stock $2,420,000

30

Dr Cash $540,000

Cr Preferred stock $495,000

Cr Paid in capital in excess of par-Preferred stock $45,000

Explanation:

Preparation of the journal entries

Jan 22

Dr Cash $720,000

Cr Common stock $720,000

(180,000 shares * $4)

Feb 14

Dr Cash $2,420,000

Cr Preferred stock $2,420,000

(44,000 shares * $55)

30

Dr Cash $540,000

(9,000 shares * $60)

Cr Preferred stock $495,000

(9,000 shares * $55)

Cr Paid in capital in excess of par-Preferred stock $45,000

[9,000 shares *($60- $55) ]

5 0
3 years ago
Boston Pizza wants to determine how effective its retail space is compared to other pizza establishments in the local area. The
Sidana [21]

Answer:

Answer to this question is 'Sales per square foot'.

Explanation:

To determine the effectiveness of any retail space, the sale per square foot is to be calculated. Sales per square foot is a measure that is used to calculate the revenue that any retail store is able to generate for each foot in their given retail space. Sales per square foot is calculated by dividing 'Total Net Sales' with the 'Total Floor Area' of the given retail store. Therefore, the calculation of the indicator is arrived at by determining the Sales per square foot for its store.

5 0
3 years ago
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