Suppose 1-year Treasury bonds yield 3.00% while 2-year T-bonds yield 3.20%. Assuming the pure expectations theory is correct, and thus the maturity risk premium for T-bonds is zero, what is the yield on a 1-year T-bond expected to be one year from now?

Answers

Answer 1

Answer:

the yield on a 1-year T-bond expected to be one year from now is 1 +  x = 1.0340038835  or x = 3.40%

Explanation:

The computation of the yield on 1 year T bond expected one year from now is shown below:

Let us assume the 1 year T bond yield be x

So, the equation that could be made is given below:

(1.03) × (1 + x) = (1.032)^2

(1.03) × (1 + x) = 1.065024

1 + x =  1.065024  ÷ 1.03

1 +  x = 1.0340038835

x = 3.40%

Hence, 1 +  x = 1.0340038835

or x = 3.40%


Related Questions

7. If net sales decrease and cost of goods sold increases, the gross profit percentage
O A. decreases.
O B. will change based upon the change in total assets.
OC. increases.
D. remains the same.

Answers

Answer:

A. decreases.

Explanation:

When provided with the sales figure and the costs of golds sold (COGS), the calculation of gross profit will be the sales revenue minus the cost of goods sold.

I.e., Sale revenue - COGS = gross profit.

IF sales revenue is high and the cost of goods is low, a business will have a gross profit. The business will make losses if the cost of good s sold is greater than sales.

If sales revenue reduces and COGS increases, the gross profit percentage will decrease.

In the Cournot Model of Oligopoly:____________.
a. price is higher than the monopoly price
b. price is lower than the monopoly price, but higher than the perfectly competitive price
c. price equals the perfectly competitive price
d. price is lower than the perfectly competitive price

Answers

Answer:

b. price is lower than the monopoly price, but higher than the perfectly competitive price

Explanation:

In the Cournot Model of Oligopoly, price is lower than the monopoly price, but higher than the perfectly competitive price.

Oligopoly is a market situation in which there are a small number of  sellers which are selling homogeneous or differentiated products. Example are Market of automobiles and steel. Cournot Model of Monopoly assumes that the rival firms produce a homogeneous product and each firm are after maximization of profits through deciding on how much to produce

Sea Company reports the following information regarding its production costs:

Units produced 42,000 units
Direct labor $35 per unit
Direct materials $28 per unit
Variable overhead $17 per unit
Fixed overhead $105,000 in total


Compute the product cost per unit under absorption costing.

a. $28.00
b. $82.50
c. $80.00
d. $63.00
e. $35.00

Answers

Answer:

b. $82.50

Explanation:

The computation of the product cost per unit under absorption costing is shown below:

= Direct labor + Direct materials + variable overhead per unit + (Total fixed overhead ÷ Units produced)

= $35 + $28 + $17 + ($105,000 ÷ 42,000)

= $35 + $28 + $17 + $2.5

= $82.50 per unit

Hence, the product cost per unit under absorption costing is $82.50 per unit

Therefore the correct option is b. $82.50

On January 1, 2017, the merchandise inventory of Glaus, Inc. was $1,600,000. During 2017 Glaus purchased $3,200,000 of merchandise and recorded sales of $4,000,000. The gross profit rate on these sales was 25%. What is the merchandise inventory of Glaus at December 31, 2017?

a. $800,000.

b. $1,000,000.

c. $1,800,000.

d. $3,000,000.

Answers

Answer: $1,800,000

Explanation:

The merchandise inventory of Glaus at December 31, 2017 will be:

Begining Inventory = $1,600,000

Add: Purchases = $3,200,000

Less: Cost of goods sold = $4,000,000

Add: Gross profit = 25% × $4,000,000 = $1,000,000

Ending Inventory = $1,800,000

The answer is $1,800,000.

To promote your basket business, you plan to give away 10 baskets. Your price is $60 in your normal gross margin percentage is 50%. How much will they give away cost you and direct product costs?

Answers

Answer:

Give away cost = $600

Direct product cost = $300

Explanation:

Given:

Number of basket = 10

Price = $60

Margin = 50%

Computation:

Give away cost = Number of basket x Price

Give away cost = 10 x $60

Give away cost = $600

Direct product cost = Number of basket x Price x (1-margin)

Direct product cost = 10 x $60 x (1-50%)

Direct product cost = $300

Answer:$300

Explanation:

Montague (age 15) is claimed as a dependent by his parents, Matt and Mary. In 2019, Montague received $5,200 of qualified dividends, and he received $1,000 from a part-time job. What is his taxable income for 2019?

Answers

Answer: $4850

Explanation:

To calculate the federal income tax for Montague who is a dependent child, we should note that will the standard deduction that is allowable will be the one that is greater between paying $1,050 or the value of the earned income plus $350, but not exceeding $12,000.

This will then be calculated as:

Dividend = $5200

Add: Income from Part time job = $1000

Less: $1000 + $350 = $1350

Taxable income = $4850

Does the number of foreclosures in the early 2000s support the statement that the American Economy has a free financial system?

Answers

Answer:

The number of foreclosures in the early 2000s support the statement that the American Economy has a free financial system is explained below in detail.

Explanation:

Federal Reserve acquisitions of federal agency securities and mortgage-backed agreements have decreased mortgage interest valuations, advancing home-buying more affordable. The Federal Reserve emerged new laws for credit cards, contracts, and other financial outputs following the furrow of the financial crisis.

which of the following would make thebest topic sentence

Answers

Answer:

I need a choice...

Explanation:

The following labor standards have been established for a particular product:

Standard labor-hours per unit of output 10.3 hours
Standard labor rate $14.10 per hour

The following data pertain to operations concerning the product for the last month:

Actual hours worked 8,100 hours
Actual total labor cost $110,970
Actual output 900 units

What is the labor efficiency variance for the month?

a. $16,029 F
b. $16,497 F
c. $19,737 F
d. $19,737 U

Answers

Answer:

Direct labor time (efficiency) variance= 16,497 favorable

Explanation:

Giving the following information:

Standard labor-hours per unit of output 10.3 hours

Standard labor rate $14.10 per hour

Actual hours worked 8,100 hours

Actual output 900 units

To calculate the direct labor efficiency variance, we need to use the following formula:

Direct labor time (efficiency) variance= (Standard Quantity - Actual Quantity)*standard rate

Standard quantity= 10.3*900= 9,270

Direct labor time (efficiency) variance= (9,270 - 8,100)*14.1

Direct labor time (efficiency) variance= 16,497 favorable

When using a perpetual inventory system and the weighted-average inventory costing method, a new weighted-average cost per unit is computed __________ each __________.

Answers

Answer:

After each purchase

Explanation:

perpetual inventory system can be regarded as a kind of inventory management that utilize technology in the documentation of real-time transactions whenever stock is received or sold, this method is reliable and the efficiency is high compare to

periodic inventory system. It should be noted that When using a perpetual inventory system and the weighted-average inventory costing method, a new weighted-average cost per unit is computed after each purchase. perpetual inventory system can be use by gocesory stores.

Which area is not protected by most homeowners insurance?
The home
Your view
Loss of use
Personal property

Answers

I’m guessing mostly the home if you can choose 2 it would be the home and personal property

Homeowners insurance typically covers the home itself, personal property, and loss of use. But it does not cover the view from the home. So, the correct option is "Your view".

The view from a domestic isn't secured by Homeowners insurance since it isn't seen as a physical asset that can be insured.

The cost of repairs or substitution will not be secured by Homeowner's protections, if the house is harmed or destroyed by a secured event, such as a fire or surge. According to the perspective, they seem to have been able to get supplemental protections, but usually as a rule not secured by a conventional homeowner's security policy.

To understand what is and isn't covered, it is vital to carefully examine the Homeowner's insurance policy.

Learn more about  Homeowners insurance, here:

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At the end of 2010, a $5,000 understatement was discovered in the amount of the 2010 ending inventory as reflected in the perpetual inventory records. What were the 2010 effects of the $5,000 inventory error (before correction)?

a. Assets were understated by $5,000 and pretax income was understated by $5,000.
b. Assets were understated by $5,000 and pretax income was overstated by $5,000.
c. Cost of goods sold was understated by $5,000 and pretax income was understated by $5,000.
d. Cost of goods sold was overstated by $5,000 and pretax income was overstated by $5,000.

Answers

Answer:

a. Assets were understated by $5,000 and pretax income was understated by $5,000.

Explanation:

Inventory are part of Current Assets in the Balance Sheet. This means that when they are understated, the Assets are also understated. Also understated inventory means that cost of sales are overstated in the Income Statement and consequently, Gross Profit and Pre-tax Income are understated.

Fronthouse Corp. issues 10,000 shares of no-par value preferred stock for cash at $60 per share. The journal entry to record the transaction will consist of a debit to Cash for $600,000 and a credit (or credits) to:__________.
Preferred Stock for $20,000 and Retained Earnings for $580,000.
Retained Earnings for $600,000.
Preferred Stock for $20,000 and Additional Paid-in Capital for $580,000.
Preferred Stock for $600,000.

Answers

Answer:

Preferred Stock for $20,000 and Retained Earnings for $580,000

Or

Retained Earnings for $600,000

Or

Preferred Stock for $600,000

Explanation:

Based on the information given we were told that they issues 10,000 shares of no-par value preferred stock for cash at the amount of $60 per share which means that the journal entry to record the transaction will consist of a debit to Cash for the amount of $600,000 and a credit (or credits) to:

Preferred Stock for $20,000 and Retained Earnings for $580,000.

Or

Retained Earnings for $600,000

(10,000 shares*$60 per share )

Or

Preferred Stock for $600,000

(10,000 shares*$60 per share )

Do you think the buyer at Sealgood Instruments, Troy Smyrna, is practicing unethical behavior? First, what is the term for this behavior, and second, defend why you think it is ethical or unethical behavior.

Answers

Answer: The behavior is unethical

Explanation:

Ethical behavior could be described as doing the right thing in the right manner. Within and outside business organization, ethical behavior is compulsory, when an individual is not ethical in acts, it affects the other individual in both organizations and outside the organization.

The behavior by Troy Smyrna is unethical. The sharp practice is a situation where there is misrepresentation by the buyer and which he would have done better. The buyer didn't respect the services of the personnel attending to him

To increase and improve employees' work efforts in organizations, organizations should link ________ to ________ such as bonuses.
A. managerial control; motivation
B. motivation; goal congruence
C. performance measures; personal rewards
D. managerial effort; key success factors

Answers

Answer:

its c

Explanation:

A government spends money in order to

Answers

Answer:

The government spends money on: Social Security, Medicare, and other mandatory spending required by law. Interest on the debt--the total the government owes on all past borrowing. Discretionary spending, the amount Congress sets annually for all other programs and agencies.

Answer:

make sure government programs can function properly

Explanation:

AP3X

Moss County Bank agrees to lend the Crane Company $515000 on January 1. Crane Company signs a $515000, 6%, 9-month note. What entry will Crane Company make to pay off the note and interest at maturity assuming that interest has been accrued to September 30?

A-

Notes Payable 515000
Interest Payable 23175
Cash 538175
B-

Interest Payable 15450
Notes Payable 515000
Interest Expense 7725
Cash 538175
C-

Notes Payable 538175
Cash 538175
D-

Interest Expense 23175
Notes Payable 515000
Cash 538175

Answers

Answer:

Crane Company

The entry that Crane Company will make to pay off the note and interest at maturity assuming that interest has been accrued to September 30 is:

D-

Interest Expense 23,175

Notes Payable 515,000

Cash 538,175

Explanation:

a) Data and Calculations:

Notes payable = $515,000

Interest rate = 6% per annum

Interest expense for nine months = $23,175 ($515,000 * 6% * 9/12)

b) Interest Expense and Notes Payable will be debited with $23,175 and $515,000 while the Cash Account will be credited with $538,185.  The cash account entry pays off the note payable with interest for nine months.

Match the correct EFTA and PCI Standards.
report a stolen debit card
protect credit card data
place a stop payment on
recurring payments

maintain a secure network

Answers

Answer:

The Electronic Fund Transfer Act (EFTA) is an Act of Congress that was enacted to protect the transactions of customers transferring their funds by electronic means such as through Automated Teller Machines (ATMs) and debit cards.

The Payment Card Industry Data Security Standard (PCI DSS) is meant to ensure that financial institutions like banks have strong and secure network infrastructure to protect customers and their details.

EFTA

report a stolen debit card .place a stop payment on  recurring payments.

PCI

protect credit card data maintain a secure network

Answer:

EFTA: report a stolen debit card, place a stop payment on recurring payments

PIC standards: protect credit card data, maintain a secure network

Explanation: my brain

2. Joe, a bartender, is typically “over” in his cash drawer by two or three dollars each shift. In the past, you have always thought that it is “better to be over than to be short” and have not worried about it. However, after reviewing chapter 12, you recognize that there might be a problem.
Why could this be a problem? What would you do?

Answers

Answer:

It will add up.

Explanation:

Money adds up very fast.

Describe the various key ratios managers rely on, briefly explain what each type of ratio tells the financial manager, and give one specific example of each.

Answers

Answer: Liquidity and current ratio, Solvency Ratios and Financial Stability, Profitability Ratios and Margins

Explanation:

The various key ratios managers rely on are

1) Liquidity and the Current Ratio; is the commonly used ratio, and is the ratio of current assets to current liabilities. The ratio helps determine the company's ability to foot short term bills

2) Solvency Ratios and Financial Stability; This ratio describes the financial stability by measuring the company's debt in relation to it's assets and equity. Companies with a lot of debts may not be able to sustain themselves overtime if business conditions deteriorates

3) Profitability Ratios and Margins; defines the ability to convert sales dollars into profits and cash flow. The common ones are gross margin, operating margin and net income margin

This year Ed celebrated his 25th year as an employee of Designer Jeans Company. In recognition of his long and loyal service, the company awarded Ed a gold watch worth $105 and a $2,490 cash bonus. What amount must Ed include in his gross income?

Answers

Answer:

$2,490

Explanation:

Based on the information given we were told that in order for the company to recognize his long as well as loyal service they awarded Ed a gold watch worth the amount of $105 which as well include the amount of $2,490 as cash bonus which means that the amount that Ed must include in his gross income will be the cash bonus amount of $2,490.

Therefore the amount that Ed must include in his gross income is $2,490

You have a portfolio which is composed by a risky asset with an expected rate of return of 15% and a standard deviation of 20% and a risk free asset with a rate of return of 10%. What portion of your portfolio should be invested in the risky asset if you want your portfolio to have a standard deviation of 8%?

Answers

Answer:

Weight of risky asset = 0.4 or 40%

Explanation:

The standard deviation(SD) of a portfolio with one risky asset and one risk free asset can be calculated by multiplying the weightage of investment in the risky asset by the standard deviation of the risky asset as the risk free asset's standard deviation is zero. The formula to calculate the standard deviation of such a portfolio is,

Portfolio SD = weight of risky asset * Standard deviation of risky asset

Plugging in the values for portfolio SD and standard deviation of risky asset, we can calculate the weight of risky asset in the portfolio to be,

0.08 = weight of risky asset * 0.2

0.08 / 0.2 = weight of risky asset

Weight of risky asset = 0.4 or 40%

In a common size income statement, each item on the income statement is expressed as a percentage of:_______.A. Net income.B. Gross margin (gross profit).C. Total expenses.D. Sales revenue.

Answers

Answer:

D. Sales revenue.

Explanation:

An income statement can be defined as a document that is used to record the amount of money entering into a business.

In a common size income statement, each item on the income statement is expressed as a percentage of sales revenue.

Ehrmann Data Systems is considering a project that has the following cash flow and WACC data. What is the project's MIRR? Note that a project's projected MIRR can be less than the WACC (and even negative), in which case it will be rejected.


WACC: 9%
Year 0 1 2 3
Cash flows -$1,000 $450 $450 $450

a. 13.70%
b. 13.84%
c. 13.28%
d. 17.29%
e. 14.53%

Answers

Answer:

the project's MIRR is 13.84 %

Explanation:

MODIFIED INTERNAL RATE OF RETURN (MIRR)

-It is the rate that causes the Present Value of the Terminal Value (Future Cash flows at the end of the Project) to equal Present Value of Cash outflows.

-MIRR assumes a reinvestment rate at the end of the project

The First Step is to Calculate the Terminal Value at end of year 3.

Terminal Value (FV) = Sum of (PV x (1 + r) ^ 3 - n)

                   = $450 x (1.09) ^ 2 + $450 x (1.09) ^ 1 + $450 x (1.09) ^ 0

                   = $534.65 + $490.50 + $450.00

                   = $1,475.15

The Next Step is to Calculate the MIRR using a Financial Calculator :

(-$1,000)          CFj

0           CFj

0           CFj

$1,475.15   CFj

Shift IRR/Yr 13.84 %

Therefore, the project's MIRR is 13.84 %.

what is pizza recipe

Answers

Answer:

Dough, sauce, cheese, garlic butter for the crust, if you wanna get fancy a dash of olive oil when its baked, and your ingredients

Explanation:

SARAH makes $43,000 per year, is single, and lives in Connecticut. She has $19,000 in subsidized loans and $8000 in unsubsidized loans. Which repayment plan will be the cheapest for her in total?

Answers

Answer:

Sarah's cheapest repayment plan is:

The standard repayment plan.

Explanation:

With the standard repayment plan, Sarah repays 120 fixed monthly installments, assuming a repayment term of 10 years.  She will pay minimal interests since the standard repayment plan also offers the shortest repayment period. To minimize interest expense, Sarah should repay the unsubsidized loans before the subsidized loans.  The reason is that the unsubsidized loans accrue more interest expense over their terms than the subsidized loans.

The repayment plan that will be the cheapest for Sarah in total is the Standard Repayment plan.

This is because of all the available types of repayment plans; standard repayment plans offer the borrower the least amount to repay within ten years compared to other plans.

Also, since she owes both subsidized and unsubsidized loans, it is recommended that she repays her unsubsidized loan first because it accrues more interest before repaying her subsidized loan.

Hence, in this case, it is concluded that the correct answer is "Standard repayment plan."

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Together, Coca-Cola and Pepsi account for approximately ________ percent of the soft drink market.

a. 35
b. 45
c. 55
d. 65
e. 75

Answers

Answer:

e. 75

Explanation:

Not sure what year this question is referring to but as of 2019 Coca-Cola and Pepsi account for approximately 85 percent of the soft drink market. They have controlled the vast majority of this market since the 70's when Pepsi started making waves in the soft drink market. Effectively making the market into an oligopolistic market. Both of which continue to grow steadily as the year's pass. Therefore, for this question, I would put a 75% market control since 85% is not available.

Patents, copyrights, and trademarks:________
a. are examples of government-created monopolies.
b. allow their owners to reduce the costs of what they produce.
c. generate more revenue for the government than they cost consumers in the form of higher prices.
d. All of the above are correct.

Answers

Answer: a. are examples of government-created monopolies.

Explanation:

Patents, copyrights and trademarks are given by a government to a company to protect its products from being produced by other companies without permission which means that only the company with this government protection can produce the goods in question.

This therefore makes the company producing the goods a monopoly and one that was created via government actions.

Describe techniques companies may use to enter or grow markets in other countries. Evaluate the benefits and pitfalls of several of these tactics.

Answers

Answer:

Companies enters the foreign market through several tactics. But it has both advantages and disadvantages in doing so.

Explanation:

If there are opportunities in the foreign of the goods and a good market prospects, one can invest and expand his or her business in the foreign market. However, there are some difficulties in entering a new market in other countries which may include new competition in the market as well adapting a new environment regulatory.

Some of the ways by which one can enter the foreign market are License agreement, joint ventures, online sales of product, purchasing some of the foreign assets, etc.

The advantages are :

-- Selling products online is a low cost method. It is more convenient than having a physical asset in the foreign land.

-- Cost of establishment is saved.

The disadvantages are :

-- The freight cost will be high to and from the country.

-- There will be no direct control and one will be reliable on the association.

-- The potential country may have some strict rules and regulations for business contracts, franchises, licenses or partnerships, etc.

First one to answer gets a brainly, look at the picture please

Answers

Answer:

c

Explanation:

Answer: B

Explanation:

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