1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
4vir4ik [10]
2 years ago
9

The yield on a one-year Treasury security is 4.2300%, and the two-year Treasury security has a 6.3450% yield. Assuming that the

pure expectations theory is correct, what is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
7.2275%
10.7987%
9.6933%
8.5029%

Recall that on a one-year Treasury security the yield is 4.2300% and 6.3450% on a two-year Treasury security. Suppose the one-year security does not have a maturity risk premium, but the two-year security does and it is 0.2%. What is the market’s estimate of the one-year Treasury rate one year from now? (Note: Do not round your intermediate calculations.)
9.2285%
6.8809%
8.0952%
10.2809%

Suppose the yield on a two-year Treasury security is 5.83%, and the yield on a five-year Treasury security is 6.20%. Assuming that the pure expectations theory is correct, what is the market’s estimate of the three-year Treasury rate two years from now? (Note: Do not round your intermediate calculations.)
6.53%
5.46%
6.45%
7.10%
Business
1 answer:
maks197457 [2]2 years ago
4 0

Based on the yields given on the Treasury securities, the market estimate of the Treasury rates would be:

  • 8.5029%
  • 8.0952%
  • 6.45%

<h3>What is Market estimate for One-Year Treasury Rate in a year?</h3>

This can be found as:

= ( ( 1 + two year rate) ^ Number of years / ( 1 + one year rate) ) - 1

= ( (  1 + 6.3450%) ² / ( 1 + 4.23%) ) - 1

= 8.5029%

<h3>What is Market estimate of one year Treasury Rate given maturity premium?</h3>

This can be found as:

= ( ( 1 + two year rate - maturity premium) ^ Number of years / ( 1 + one year rate) ) - 1

= ( (  1 + 6.3450% - 0.2%) ² / ( 1 + 4.23%) ) - 1

= 8.0952%

<h3>What is the market’s estimate of the three-year Treasury rate in two years?</h3>

= ( ( 1 + five year rate) ^ Number of years / ( 1 + two year rate)^number of years) ^ ( 1 / period of Treasury yield) - 1

= ( (  1 + 6.20% ) ⁵ / ( 1 + 5.83%)² ) ¹/³ - 1

= 6.45%

Find out more on Treasury Yields at brainly.com/question/24553422.

You might be interested in
On a normal roadway, a driver in Lane Position 2 may be preparing to __________ .
dexar [7]
Exit the roadway. Hope this helps!
8 0
3 years ago
Rice Co. was incorporated on January 1, Year 6, with $500,000 from the issuance of stock and borrowed funds of $75,000. During t
Mkey [24]

Answer:

B) $617,000

Explanation:

Issuance capital of 500,000 shall remain constant. Out of the current year net earnings 25000 we are paying 2000 as dividend so, that adds to the owners equity = 23000.

Total liabilities = total assets = 500000 + 23000 + 94000 = 617000

8 0
3 years ago
On January 1, 2009, Coronado Industries purchased for $690000, equipment having a useful life of ten years and an estimated salv
JulijaS [17]

Answer:

There is not gain in this operation so the answer is $0

Explanation:

There are some journal entries that needs to be done to have a full picture of the statement

* Purchase

Fixed Assets                        690.000

Cash                                                        690.000

* Monthly depreciation

Since, the FA was depreciated during 8 years. Firstly you have to calculate the amount that can be depreciate on a monthly basis

Amount to be depreciated = (Cost of the FA - Salvage value) = (690.000-48.600) = 641.400

Then calculate the yearly depreciation

Yearly depreciation = ((amount to be depreciated/useful life) * years used) =

(641.400/10*8) = 513.120

then the journal entry to record the monthly depreciation for 8 years is

Depreciation expense          513.120

Acc Depreciation                                   513.120

* Post the Journal Entry to record the sell of FA

You have to reverse the Acc Depreciation and credit the FA

Cash                                     152.500

Fixed assets                                         690.000

Acc depreciation                   513.120

Loss on sale of FA                   24.380

6 0
3 years ago
Many television infomercial advertise a product at a very low price. after you order the product, you find there is a fairly sub
musickatia [10]

Answer:

This is an example of multiple pricing.

Explanation:

Sometimes if you add all the extra charges, like shipping and handling, you might realize that the product being offered by the infomercial is actually more expensive than similar products that you can buy on retail stores or websites.

Infomercials do this on purpose, they use low selling prices as bait, but then they charge very high fees for processing your order and shipping it.

4 0
3 years ago
Consider Derek's budget information: materials to be used totals $65,100; direct labor totals $198,700; factory overhead totals
egoroff_w [7]

Answer:

cost of goods manufactured= $653,500

Explanation:

Giving the following information:

Consider Derek's budget information: materials to be used totals $65,100; direct labor totals $198,700; factory overhead totals $393,700; work in process inventory January 1, $188,500; and work in progress inventory on December 31, $192,500.

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 188,500 + 65,100 + 198,700 + 393,700 - 192,500= $653,500

5 0
3 years ago
Other questions:
  • Select all items that describe command economies.
    13·2 answers
  • One year ago, JK Mfg. deposited $20,500 in an investment account for the purpose of buying new equipment four years from today.
    13·1 answer
  • In the absence of market failures, when the government taxes market participants, the effect is to move the market: Group of ans
    11·1 answer
  • Select the correct answer. Which actions should a company take if its product/brand falls under the BCG Matrix category of “dog”
    8·1 answer
  • What is market segmentation? Dividing people into common groups based on Zip Code. Grouping products into distinct categories ba
    9·1 answer
  • Which step minimizes project risks?
    15·2 answers
  • The tables show the utility Parker experienced from consuming varying quantities of waffles and pancakes. Assume that waffles co
    7·1 answer
  • Alexis Co. reported the following information for May: Part A Units sold 6,800 units Selling price per unit $ 980 Variable manuf
    7·1 answer
  • What is cold Storewhat is cold Store <br>​
    12·1 answer
  • a. The equality of MR and MC is essential for profit maximization in all market structures because if
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!