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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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An electronic products producer synthesizes its abilities in miniaturization, microprocessor design, material science, and ultra
Usimov [2.4K]

Answer:

Core competencies

Explanation:

Competencies can be defined as a combination of various skills which are essential to increase productivity.

Core competencies can be described as the different skills and practices which all employees in an organization are expected to possess irrespective of the various department's they belong to.

Some examples of core competencies include:

- Creativity

- Team work

- Technological awareness

- Leadership

- Good sense of organization.

- Accountability

8 0
3 years ago
Omar is setting up his company in quickbooks and selects the accrual basis of accounting. how will his business record income an
algol [13]

Omar is setting up his company in QuickBooks and selects the accrual basis of accounting. income is recorded when sales are made; expenses are recorded when incurred while his business record income and expenses.

Accrual accounting is a method of accounting in which revenue or expense is recognized when a transaction occurs, rather than when payment is made. This method follows the matching principle that income and expenses should be recorded in the same period.

Basic knowledge of debits and credits and what goes on behind the scenes. To use a QuickBooks backup file, you must restore it first. All commands accessible from the home page can also be found in the menu bar.

Learn more about QuickBooks at

brainly.com/question/24441347

#SPJ4

4 0
2 years ago
David Ortiz Motors has a target capital structure of 40% debt and 60% equity. The yield to maturity on the company's outstanding
Marrrta [24]

Answer:

Cost of equity = 14.43%

Explanation:

Weigheted Average cost of capital is computed using the formula below:

WACC = (Wd×Kd)  + (We×Ke)

           Kd= aftre tax cost of debt= 12%× (1-0.4)= 7.2%

           Wd =Proportion of debt= 40%

           We = proportion of equity = 60%

            Ke= cost of equity.

let the cost of equity be "y"

WACC = 11.54

11.54 = (40%× 7.2%) + (60% × y)

0.1154  = 0.0288 + 0.6y

0.1154 - 0.0288 = 0.6y

y =(0.1154 - 0.0288)/0.6

y = 0.1443 × 100

y =14.43%

Cost of equity = 14.43%

         

8 0
3 years ago
Your boss has told you to hire four more people to help you keep track of inventory. What kind of need is this
Fynjy0 [20]
I would say thats a business operations need!

Hope this help! :)
7 0
2 years ago
Bridgitte and Carlotta have started a business together; Carlotta put up half the money, but she is not involved in the manageme
Fittoniya [83]

Answer:

Limited partnership.

Explanation:

Limited partnership is a business that is set up by people who want to run a partnership together but where one or more of the partner is only interested in investing in the partnership without the desire to be involved in the day to day running as well as the right to take decision concerning the partnership, such an arrangement is called Limited partnership. The liability of the Limited partner is limited to the amount of capital contributed.

The other type of partner is general partner who is involved in the day to day running of the firm and has unlimited liability for the debt of the partnership.,

5 0
3 years ago
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