One-year Treasury bills currently earn 3.25%. You expect that one year from now, 1-year Treasury bill rates will increase to 3.45%. The liquidity premium on 2-year securities is 0.06%. If the liquidity premium theory is correct, what should the current rate be on 2-year Treasury securities?

Answers

Answer 1

Answer:

the current rate be on 2-year Treasury securities is 3.38%

Explanation:

The computation of the current rate on the 2-year treasury securities is shown below:

= {(1 + current interest rate) × (1 + increased current interest rate + liquidity premium)^(1 ÷ 2)} - 1

= {(1 + 3.25%) × (1 + 3.45% + 0.06%)^(1 ÷ 2)} - 1

= (1.0325 × 1.0351)^(1 ÷ 2)} - 1

= 3.38%

Hence, the current rate be on 2-year Treasury securities is 3.38%


Related Questions

Zebco Inc is evaluating a project that has a cost of $1,000 and will produce end-of-year net cash inflows of $500 per year for 3 years. The required rate of return for this project's is 10 percent. The difference between the project's IRR and its MIRR is closest to:_________.
a. 5.09%
b. ​5.75%
c. ​4.31%

Answers

Answer:

a. 5.09%

Explanation:

initial outlay = -$1,000

cash flow 1 = $500

cash flow 2 = $500

cash flow 3 = $500

the simplest way to determine the IRR and MIRR is to use an excel spreadsheet and the IRR and MIRR functions:

IRR = 23.38%

in order to us the MIRR formula, we must use the 10% rate as both financing and reinvestment rates.  

MIRR = 18.29%

difference between them = 23.38% - 18.29% = 5.09%

Monopolistic competition is defined by product differentiation .explain

Answers

Explanation:

Product differentiation is the means used by a firm in a monopolistic competitive market with many firms selling similar products to differentiate its product from that of other firms

Answer:

In Monopolistic Competition, a buyer can get a specific type of product only from one producer. In other words, there is product differentiation. The firms have to incur selling expenses since there is product differentiation. There is a large number of sellers with inter-dependent demand and supply conditions

Explanation:

From the list of universality skills,gey the aspects which you think you have embody.​

Answers

Answer:

i didn't got ur question..

Oxford university I’m not sure

PLEASE ANSWER

what is the tort in the situation above?

Answers

TYLER

THIS IS YOUR MOTHOR WHY ARE YOU CHEATING IN BUSSINESS

I THOPUGHT YOU WERE GOING TO PLACES LIKE  A DOCTOR OR LAW BEFORE BUT I WAS FINE WITH BUSINESS UNTIL NOW GET YOUR REAR END HERE AND EXPALIN THIS RIGHT NOW!!!!!

A firm has a tax burden ratio of 0.8, a leverage ratio of 1.35, an interest burden of 0.8, and a return on sales of 12%. The firm generates $2.60 in sales per dollar of assets. What is the firm's ROE?

Answers

Answer:

28.64%

Explanation:

ROE = Tax burden * Interest burden * Margin * Turnover * Leverage

ROE = 0.85*0.8*0.12*2.60*1.35

ROE = 0.286416

ROE = 28.64%

Critically examine the maximax criteria for decision making under uncertainty
         ​

Answers

Explanation:

A decision under uncertainty is when there are many unknowns and no possibility of knowing what could occur in the future to alter the outcome of a decision.

This type of organization allows for many people to make decisions about the same service or need within the company.

A. Guarded

B. Pseudo-Guarded

C. Centralized

D. Decentralized

Answers

Answer:

D. Decentralized

Explanation:

In a decentralized organizational structure, the top management transfers some of the decision-making to middle and lower levels managers. Individual employees are also empowered to make certain decisions. The overall authority is still with by top-level managers. They make policies that guide the company's decision-making process in the company. However, most decision-making responsibility is delegated to lower-level managers and employees.

Alma Corp. issues 2,480 shares of $8 par common stock at $16 per share. When the transaction is recorded, credit(s) are made to a.Common Stock $19,840 and Retained Earnings $19,840. b.Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840. c.Common Stock $39,680. d.Common Stock $19,840 and Paid-in Capital in Excess of Par Value $19,840.

Answers

Answer:

b. Common Stock $19,840 and Paid-in Capital in Excess of Stated Value $19,840.

Explanation:

                                         Journal Entry

Particulars                                           Debit             Credit

Cash ($16*2,480)                                $39680

Common stock (2,480 *$8)                                         $19,840

Paid in capital in excess of par value (2,480 *$8)      $19,840

An investor can invest money with a particular bank and earn a stated interest rate of 8.80%; however, interest will be compounded quarterly. What are the nominal (or stated), periodic, and effective interest rates for this investment opportunity? Interest Rates Nominal rate 8.80% Periodic rate 6.12% Effective annual rate 9.00%

Answers

Answer:

nominal interest rate = 8.8%

periodic interest rate = 2.2%

the effective interest rate = 9.09%

Explanation:

nominal interest rate is the rate given to the investor = 8.8%

periodic interest rate = nominal interest rate / total number of compounding periods per year = 8.8% / 4 = 2.2%

the effective interest rate = (1 + periodic interest rate)ⁿ - 1 = (1 + 8.8%/4)⁴ - 1 = (1 + 8.8%/4)⁴ - 1 = (1 + 2.2%)⁴ - 1 = 1.0909 - 1 = 0.0909 = 9.09%

A few years ago the British government was considering​ retiring, or buying back from​ investors, some outstanding consols that had annual coupons of . A consol​ is:______

a. a coupon bond that pays a variable coupon rate and does not mature.
b. a coupon bond that pays a fixed coupon rate and has a fixed maturity date.
c. a coupon bond that pays a variable coupon and has a fixed maturity date.
d. a coupon bond that pays a fixed coupon rate and does not mature.

If the yield to maturity on other​ long-term British government bonds was 2.0​%, the price the British government is likely to offer investors is ​£ _________

Answers

Answer: d. coupon bond that pays a fixed coupon rate and does not mature.

$3250

Explanation:

A consol is a coupon bond that pays a fixed coupon rate and does not mature. Consols are consolidated annuities that are perpetual. A steady amount of interest is paid for a consol even though they're not redeemable

Price of a consol will be gotten as fixed coupon amount divided by the rate of return. Let's assume that the fixed coupon amount is $65, then the price will be:

= 65/2%

= $3250

A company is experiencing accessibility issues reaching services on a cloud-based system. What monitoring tools should be used to locate possible outages

Answers

A network analyzer is a useful tool, helping you do things like track traffic and malicious usage on the network.

A simple random sample of 700 individuals provides 200 Yes responses. a. What is the point estimate of the proportion of the population that would provide Yes responses (to 2 decimals)? b. What is your estimate of the standard error of the proportion (to 4 decimals)? c. Compute the 95% confidence interval for the population proportion (to 4 decimals).

Answers

Answer and Explanation:

A. The point estimate of individuals that would provide yes responses is the sample proportion. The sample proportion is calculated by dividing number of yes responses by sample size:

p = x/n = 200/700= 0.2857

B. The standard error of the population is the square root of the product of the point estimate and it's complement divided by the sample size given by

√p(1-p)/n

=√0.2857(1-0.2857)/700= 0.0170

C. For confidence level 95%, z score is calculated 1-0.95= 0.05/2= 0.025

Z score checked under the table = 1.96

Boundaries=

P-1.96 *standard error and p+1.96 *standard error

= 0.2857-1.96*0.0170= -0.25238

=0.2857+1.96*0.0170= 0.31902

Note : BODMAS demands we multiply first in the above calculation before subtraction or addition.

If coal mining produces a negative externality because it leads to environmental damage, then, at the market equilibrium, the:________. a. price of coal will be higher than the socially optimal price b. quantity of coal produced will be less than the socially optimal quantity. c. quantity of coal produced will be greater than the socially optimal quantity d. supply curve will lie to the left of the regulated supply curve.

Answers

Answer: c. quantity of coal produced will be greater than the socially optimal quantity

Explanation:

The Socially Optimal quantity is the level of production that takes into account the negative externality being produced by coal and weighs it against the marginal benefit it brings.

If coal produces the negative externality of polluting the environment here then the socially optimal quantity of coal will be less than the market equilibrium because the marker equilibrium would not have taken into account the negative externality and will lead to more coal being produced than should be.

A stock has a beta of 1.2. Suppose the expected market risk premium (EMRP) is 6% and the risk-free rate is 1%. What is this stock's expected return according to the CAPM

Answers

Answer:

7%

CAPM = 1% + [6% - 1%](1.2) = 1% + 6% = 7%

Find the equivalent taxable yield of the municipal bond for tax brackets of zero, 10%, 20%, and 30%, if it offers a yield of 4.50%

Answers

Answer and Explanation:

The computation of the equivalent taxable yield is shown below:

For zero = 4.50%

For 10% =  4.50 ÷ 0.90 = 5%

For 20% =  4.50 ÷ 0.80 = 5.625%

For 30% =  4.50 ÷ 0.70 = 6.43%

For 10%, for 20% and for 30% it would reduced the tax brackets by the same

like

for 10%

= 1 - 0.10

= 0.90

The Same applied for other ones

Therefore the above should be the answer

A stock has an expected return of 13.4 percent, the risk-free rate is 9 percent, and the market risk premium is 10 percent. What must the beta of this stock be?

Answers

Answer: 0.44

Explanation:

From the question, we are informed that a stock has an expected return of 13.4 percent, the risk-free rate is 9 percent, and the market risk premium is 10 percent.

The beta of this stock be calculated as:

= (13.4% - 9%) / 10%

= 4.4% / 10%

= 0.044 / 0.10

= 0.44

Therefore, the beta of the stock is 0.44

When you add additional forms to a project, you add additional ________, which are stored in their own files.

Answers

classes


hope this helps

What factors under the control of owners and managers make a firm successful and allow it to earn economic​ profits?
Owners and managers control some of the factors that make a firm successful such as:______.
A, The goverment's ability to promote economic growth
B. Sheer chance
C. The role foreign oil plays in determining transportation costs
D. The firm's ability to produce at an average cost above the minimum long - run average cost
E. The firm's ability to differentiate its product

Answers

Answer: E. The firm's ability to differentiate its product

Explanation:

The factor under the control of owners and managers that make a firm successful and allow it to earn economic​ profits is the firm's ability to differentiate its product.

Product Differentiation has to do with making a product unique from that of its rivals so that it'll be attractive to the customers and the target market. This will slow be vital for the company to produce at a average cost that is lower than that of its competing firms. This will help the company to have a competitive edge over others.

You work as a tutor for ECON 102. You sell your services at $20/hr., and you can only tutor one person at a time. Suppose you currently have 5 clients. If it cost you on average $14/hr to tutor the first student, in order to increase profits you should. a. We need more information to answer b. Find more clients c. Lower the price d. Get rid of some clients e. Continue to see the same number of clients

Answers

Answer:

a. We need more information to answer

Explanation:

In order to correctly answer his question we need more information. Economy is all about the margin, i.e. marginal revenue versus marginal cost. We are given the marginal revenue ($20/hr of tutoring services) but we are not given the marginal costs of tutoring. We only know that the cost of tutoring the first hour is $14, but what about the rest of the hours. Since you have 5 clients, you must be tutoring more than 1 hour per day. It is always easier to determine the marginal revenue since we determine it, while we cannot determine which costs we would like to incur.

Profits should be maximized when marginal revenue = marginal cost, but unless we know the marginal cost of tutoring the rest of the students we simply cannot answer this question.

In order to maximize profit, this perfectly competitive firm should produce:________.a. 30 units of output. b. 60 units of output. c. 50 units of output. d. 40 units of output.

Answers

Answer:

Perfect Competition meaning & equilibrium condition. Explanation of various cases when Q can be either options.

Explanation:

Perfect Competition market is a market with many buyers & sellers, selling homogeneous products, at identical prices.

Perfect competition firm is at equilibrium, when : Marginal Revenue (MR), ie same as Price (P) = Marginal Cost (MC)

Suppose TC = 100 + Q^2 , P = 60

Then MC =  2Q . Equalising MC & P, Q = 60 / 2 = 30

Suppose TC = 100 + Q^2 , P = 80

Then MC = 2Q. Equalising MC & P , Q = 80/2 = 40

Suppose TC = 100 + Q^2 , P = 100

Then MC  = 2.  Equalising MC & P, Q = 100/2 = 50

Suppose TC = 100 + Q^2 , P = 120

Then MC = 2Q. Equalising MC & P, Q = 120 / 2 = 60

A produce distributor uses 776 packing crates a month, which it purchases at a cost of $9 each. The manager has assigned an annual carrying cost of 36 percent of the purchase price per crate. Ordering costs are $31. Currently the manager orders once a month. How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the "$" sign in your response.) Savings $_________ per year

Answers

Answer:

$261.42

Explanation:

economic order quantity (EOQ) = √(2SD/H)

S = cost per order = $31

D = annual demand = 776 x 12 = 9,312

H = holding cost = $9 x 36% = $3.24

EOQ = √[(2 x $31 x 9,312) / $3.24] = √178,192.59 = 422.13 ≈ 422

total ordering and holding costs considering EOQ:

ordering costs = (9,312 / 422) x $31 = $684.06

holding costs = $3.24 x (422/2) = $683.64

total = $1,367.70

current costs:

ordering costs = $31 x 12 = $372

holding costs = $3.24 x (776/2) = $1,257.12

total = $1,629.12

annual savings = $1,629.12 - $1,367.70 = $261.42

Fitch Ratings a credit rating agency, recently downgraded Vermont's debt rating from AAA to AA, citing the state's economy and changing demographics This change could supood:________.a. Increase the direct costs of the state's debt. b. Increase private investment c. Cause the vote to invest in more securities d. None of these likely to occur

Answers

Answer:

a. Increase the direct costs of the state's debt.

Explanation:

When a bond's rating is downgraded is a signal to the investors that investing in the bond now is riskier than it was prior to the rating downgrade, hence, a perceived higher risk using the risk/return relationship means that the bond issue would have to offer a higher return to entice the investors to invest in the bonds.

As a result, the higher required rate of return translates into a higher direct cost of the state's debt since their interest rate offered has increased

When the character playing Alice in Wonderland signed autographs and had her picture taken with guests at Disneyworld, it was an example of a(n):______

a. Customer action
b. Onstage contact employee action
c. Backstage contact employee action
d. Support process
e. Audience action

Answers

Answer: B. Onstage contact employee action

Explanation:

When the character playing Alice in Wonderland signed autographs and had her picture taken with guests at Disneyworld, it was an example of onstage contact employee action

Onstage visible actions by employees are referred to as the face-to-face contacts that the employees of an organization have with their customers while delivering the products. For the backstage contact employee action, those are not visible to customers.

An operator trainee is attempting to monitor a filling process that has an overall average of 705 cc. The average range is 17 cc. If you use a sample size of 6, what are the upper and lower control limits for an R-chart?

Answers

Answer and Explanation:

The computation of the upper and lower control limits for R-chart is shown below:

Upper Control limit of [tex]\bar x[/tex] chart is

[tex]\bar x[/tex] + A2 × [tex]\bar R[/tex]

=705 + 0.483 × 17

=713.21

Lower Control Limit Of [tex]\bar x[/tex] Chart is

[tex]\bar x[/tex]- A2 × [tex]\bar R[/tex]

= 705 - 0.483 × 17

= 696.789

The A2 value could be taken from the X bar and R bar chart having a sample size of 6

Now  

Upper control limit of R Chart

= D4 ×  [tex]\bar R[/tex]

= 2.004 × 17

= 34.068

And,

Lower limit of R chart

=  D3 × [tex]\bar R[/tex]

= 0.076  × 17

= 1.292

The D3 value is not available for the sample size 6 so we took the values of sample size 6

Also the D3, D4, and A2 could be taken from X bar tables and the range chart

Explain how Robert might perceive the office assistant's reaction.

Answers

Answer:

we need a full question to this to answer

Explanation:

Renoir Associates has declared a​ $49,000 cash dividend to shareholders. The company has​ 4,000 shares of ​$16​par, ​6% preferred stock and​ 11,000 shares of ​$16par common stock. The preferred stock is noncumulative. How much will be distributed to the preferred and common stockholders on the date of​ payment?

Answers

Answer:

Preferred stock dividend is paid our before common dividends are paid out. Preferred dividends are;

= 4,000 * 16 * 6%

= $‭3,840‬

Common Stock Dividends

= 49,000 - ‭3,840‬

= $‭45,160‬

The risk free rate is 4%, and the required return on the market is 12%. 1. What is the required return on an asset A with a beta of 1.5?2. What is the reward/risk ratio?3. What is the required return on a portfolio consisting of 40% of the asset above and the rest in an asset with an average amount of systematic risk?

Answers

Answer:

required return 16%

risk/reward  8%

portfolio return 13.60%

Explanation:

Required return=risk-free rate+beta*(market return-risk free rate)

risk-free rate=4%

beta=1.5

market return=12%

required return=4%+1.5*(12%-4%)=16.00%

Reward/risk ratio=market return-risk free rate

reward/risk ratio=12%-4%=8%

Portfolio return=weight of the asset* required return on asset+weight of the rest of the portfolio*market return

weight of the asset=40%

required return=16%

weight of the rest of the portfolio=1-40%=60%

market return=12%

portfolio return=(40%*16%)+(60%*12%)=13.60%

The risk-free rate is termed as the return that is associated with the investment with zero or no risk. It represents the number of investors that would expect a higher return from no-risk investment over a specified period of time.

The answers are:

required return 16%

risk/reward  8%

portfolio return 13.60%

[tex]\begin{aligned}\text{Required return}=\text{risk-free rate}+\text{beta}\times(\text{market return-risk free rate})\end{aligned}[/tex]

risk-free rate=4%

beta=1.5

market return=12%

[tex]\begin{aligned}\text{required return}=4\%+1.5\times(12\%-4\%)=16.00\%\end{aligned}[/tex]

[tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex] ratio=market return-risk free rate

[tex]\begin{aligned}\frac{\text{reward}}{\text{risk ratio}}=12\%-4\%=8\%\end{aligned}[/tex]

Hence the [tex]\begin{aligned}\frac{Reward}{risk}\end{aligned}[/tex]  ratio is 8%

Portfolio return=[tex]\text{weight of the asset}\times\text{ required return on asset}+\text{weight of the rest of the portfolio}\times{\text{market return}}[/tex]

weight of the asset=40%

required return=16%

weight of the rest of the portfolio=1-40%=60%

market return=12%

portfolio return=[tex](40\%*16\%)+(60\%\times12\%)=13.60\%[/tex]

Therefore the required return on a portfolio is 13.60%.

To know more about the risk-free rate, refer to the link below:

https://brainly.com/question/20166183

TIME REMAINING
29:35
What gives the US government the power to collect taxes?

the Constitution
laws passed by Congress
an executive order
common law

Answers

Answer:

The Constitution

Explanation:

In the United States, Article I, Section 8 of the Constitution gives Congress the power to "lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This is also referred to as the "Taxing and Spending Clause."

Shane is a newly hired inventory manager at a manufacturing firm. What can he do to avoid shortages or excess quantity of inventory?

Answers

Answer:

take inventory on how much product he has and how much he needs

Explanation:

Answer:

Honestly not sure but I personally put "C. plan appropriate order cycles for the inventory"

Explanation:

Plato

State the 5 most important banking services and rank them in order that you feel most important.

Answers

Answer:

checking account, savings acc, debit and credit cards, insurance , wealth management

Explanation:

The most important banking services can be as follows:

Account openingCheck issuing facilityLoan facilityIssuing credit or debit cardsInsurance assistance

What is a bank?

The bank is a financial authority that is accountable to the account holders who have opened their accounts in their bank.

Banks provide various types of services which are described as follows:

Banks allowed every individual of a country to open their respective accounts in any bank as per their income source.Banks provided the account holders the permit to issue a check in respect of any transaction in his/her name.They are given loans to the holder at a certain interest rate in accordance with the amount held in their bank accounts.They offer credit or debit cards for making cashless transactions or buying something expensive product in installments.They also provide insurance facilities in collaboration with the insurance company for a time span of some years.

Therefore, the service being provided by banks are explained as above.

Learn more about the banking system in the related link:

https://brainly.com/question/15062008

#SPJ2

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12 time 10 times 10 times 10 While on a trip, you notice that the video screen on the airplane, in addition to showing movies and news, records your altitude (in kilometers) above the ground. As the plane starts its descent (at time x = 0), you record the following data:Time, x (min.)Altitude, y (km)012210486684102If you were to graph this information, the resulting line would represent a linear function. Using this information from the table and the information on your graph, by how much does the altitude of the plane change for each three-minute change in time during the descent.a.The altitude of the plane decreases 2 kilometers for each 3 minutes into the descent.b.The altitude of the plane decreases 3 kilometers for each 3 minutes into the descent.c.For every 3 minutes, the altitude of the plane increases 3 kilometers.d.For every 3 minutes, the altitude of the plane increases 2 kilometers.Please select the best answer from the choices provided A water slide starts at (0,144) and ends at (12,0) what is the slope of the slide FIGURES OF SPEECHIdentify Similes, Metaphors, Personification and Transferred Epithet in thefollowing sentences:1. He passed a sleepless night2. Richard fought like a lion.3. Richard was a lion in the fight.4. The plough-man homeward plods his weary way.5. Death lays his icy hands on kings.6. The frog began his concert.7. The poem is as lovely as a tree.8. The sun is like a ball of fire.9. The cat's eyes were jewels gleaming in the darkness.10.The flames ate hungrily at the wood.11. She has a heart of stone.a .12.Her hair was silk.13.I saw her with a sad look.14.The slow hours passed in agony. With a planned volume of 15,000 units, the master budget includes variable costs of $450,000 and fixed costs of $350,000. If the actual volume is 12,000 units, the total costs under flexible budget should be:__________a. $490,000.b. $560,000.c. $650,000.d. $710,000. I need help please. y'all don't have to answer this I got it:) Which force results from charged particles Dry ice is a form of carbon dioxide that sublimates at room temperature. At a Halloween party, some students noticed that the dry ice underwent a phase change. Which statement below best describes the change in the energy and physical characteristics of the molecules of carbon dioxide during this process?a: The molecules experienced a physical change from a gaseous state to a liquid state, releasing energy into the environment and reducing the molecular movement.b: The molecules experienced a chemical change as the carbon dioxide reacted with oxygen, which released oxygen gas into the environment and increased the molecular movement.c: The molecules experienced a physical change from a solid state to a gaseous state, which increased the molecular movement and the energy of the carbon dioxide molecules. d: The molecules experienced a chemical change from a liquid state to a solid state, which reduced the amount of energy between the carbon dioxide molecules and decreased the molecular movement. 4x 4y = 24y= 7x + 6A) (-2, 8)C) (-8,8)B) (-2, -8)D) (-8, -8) Solve for x. Round your answer to two decimal places. Show your work for full credit. help pls!!**It's about culinary art: baking, pastry, and more!!** If a patient has a medical condition that causes his cells to absorb fewer than normal __________ molecules, this patient would likely feel very tired. Explain your reasoning1. oxygen 2. fiber3. starch4. protein 3. Which statement best expresses a theme in the poem? A. A strong support system is necessary to overcome adversity. B. Gaining confidence with a new task requires independence and attention to detail. C. It takes time and courage to endure unfamiliar circumstances. D. Friends can inspire us to embrace the mystery of the unknown. Ill give brainlist please The ratios of the measure of two supplementary angles is 5:7. What is themeasure of the larger angle? Will mark as brainliest if correct! (#14) Collecting wild specimen and allowing them to reproduce in an environment away from predation can also be called aYour answer: The present value of a 10-year annuity-immediate with level annual payments and interest rate i is X. The present value of a 20-year annuity immediate with the same payments and interest rate is 1.5X. Find i.a. 7.2%. b. 7.0% c. 6.8% d. 6.6% e. 6.4% A sandwich shop has 4 different types of sandwiches: ham (H), turkey (T),chicken (C), or PB&J (P). And each sandwich can be ordered with white bread (w),multi-grain bread (M), or rye bread (R).