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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.

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Answer:

e. $6,042

Explanation:

Net income of Bad tattoo co. = Addition of retained earnings + Dividends

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But,

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$11,758 = $95,560 - $75,720 - Depreciation expense - $2,040

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Answer:

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Explanation:

using the given data below is the entry

The adjusting entry to recognize bad debts will include a debit to bad debt expense for

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3 years ago
Cage company had net income of $365 million and average total assets of $2,040 million. its return on assets (roa) is?
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Cage company had a net income of $365 million and average total assets of $2,040 million. its return on assets (ROA) is 17.6%.

Net salary is the total net salary after deducting all taxes and other employee benefits. This is the amount deposited in your bank account that you can use for your budget and living expenses. Simply put, Gross Salary - Deductions = Net Salary.

Net income is the income of an individual or business after deducting expenses, allowances, and taxes. In commerce, net profit is what is left in the business after all expenses such as salaries and wages, cost of goods and raw materials, and taxes.

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