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Sav [38]
2 years ago
14

The real risk free rate is 3%, inflation is expected to be 2% this year, and the maturity risk premium is zero. Ignoring any cro

ss-product terms, what is the equilibrium rate of return on a 1-year t-bond?.
SAT
1 answer:
Aleonysh [2.5K]2 years ago
4 0

<u>The equilibrium rate of return on a 1 year T-bond is 5%</u>

<u />

<h3>Equilibrium rate</h3>

This is the interest rate at which the demand meet the supply at a particular point.

<h3>Equilibrium rate of return</h3>

This is the sum of dividend yield plus the rate of capital gains.

we can also say that the equilibrium rate for a 1 year T-bond in this case is the sum of the real risk free rate and the expected inflation.

Data

  • Real risk free rate = 3%
  • Expected inflation = 2%

Hence, the equilibrium rate of return will be 3% + 2% = 5%.

From the above, the equilibrium rate of return is 5%

Learn more on rate here

brainly.com/question/7040405

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slega [8]

The expression to find the sum of terms of the series is; Sₙ = 3(1 - ¹/₂ⁿ)

<h3>How to solve Geometric series?</h3>

We are given the series;

3/2 + 3/4 + 3/8 + 3/16 +.....

Formula for the nth term of a geometric series is;

aₙ = ar^(n - 1)

where;

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From our given series;

a = ³/₂

r = (³/₄)/(³/₂) = ¹/₂

We know that Sum of GP when n < 1 is;

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Thus;

Sₙ = ³/₂(1 - ¹/₂ⁿ)/(1 - ¹/₂)

Sₙ = 3(1 - ¹/₂ⁿ)

Thus, the expression to find the sum of terms of the series is; Sₙ = 3(1 - ¹/₂ⁿ)

Read more about Geometric Series at; brainly.com/question/24643676

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6 0
1 year ago
You and another lifeguard find an unresponsive adult on the locker room floor. The other lifeguard goes to summon ems personnel.
Naddik [55]

Given what we know, we can confirm that the next step to take is to give ventilations to assist the patient in breathing until EMS arrives.

<h3>What are ventilations?</h3>

Ventilation is a form of assisted breathing. This is often done through the use of machines but can be achieved through manual means as well when necessary, such as in this situation. The lifeguard will give ventilation once every 5 or so seconds to bring the patient's breathing rate to a steady 12 times per minute until EMS arrives.

Therefore, we can confirm that the next step to take is to give ventilations at a rate of 12 times per minute to assist the patient in breathing steadily until EMS arrives.

To learn more about ventilation visit:

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7 0
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What is an "at risk" driver
yawa3891 [41]
Something that is bouned to happen to the driver wen driving in a vehicles or like say if they had a dangerous job then they would be in risk
3 0
3 years ago
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Nesterboy [21]

Answer:Photosynthesis converts carbon dioxide and water into oxygen and glucose.

Explanation:

Glucose is used as food by the plant and oxygen is a by-product. Cellular respiration converts oxygen and glucose into water and carbon dioxide. Water and carbon dioxide are by- products and ATP is energy that is transformed from the process.

5 0
2 years ago
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Fill in the blank with the Spanish word that best completes the following sequencs. cuarto, quinto,_________ sexto séptimo segun
kramer

Answer:

The answer is sexto.

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