subject
Business, 25.02.2020 18:40 aks3489

The Wall Street Journal reports that the rate on three-year Treasury securities is 7.00 percent, and the six-year Treasury rate is 6.20 percent. From discussions with your broker, you have determined that expected inflation premium is 2.25 percent next year, 2.50 percent in Year 2, and 2.50 percent in Year 3 and beyond. Further, you expect that real interest rates will be 4.4 percent annually for the foreseeable future. Calculate the maturity risk premium on the 3-year Treasury security.
A. 0.00 percent
B. 0.10 percent
C. 4.50 percent
D. 2.60 percent

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 06:30
Individual consumers belong to which step of choosing a target market? possible customers competition demographics communication
Answers: 2
question
Business, 22.06.2019 09:50
Is exploiting a distinctive competence or improving efficiency for competitive advantage. (a) cooptation (b) coalition (c) competitive intelligence (d) competitive aggression (e) smoothing
Answers: 1
question
Business, 22.06.2019 21:00
Kendra knight took part in a friendly game of touch football. she had played before and was familiar with football. michael jewett was on her team. in the course of play, michael bumped into kendra and knocked her to the ground. he stepped on her hand, causing injury to a little finger that later required its amputation. she sued michael for damages. he defended on the ground that she had assumed the risk. kendra claimed that assumption of risk could not be raised as a defense because the state legislature had adopted the standard of comparative negligence. what happens if contributory negligence applies? what happens if the defense of comparative negligence applies?
Answers: 2
question
Business, 23.06.2019 01:50
Consider a firm with a contract to sell an asset for $149,000 four years from now. the asset costs $85,000 to produce today. a. given a relevant discount rate of 14 percent per year, calculate the profit the firm will make on this asset. (a loss should be indicated by a minus sign. do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. at what rate does the firm just break even?
Answers: 3
You know the right answer?
The Wall Street Journal reports that the rate on three-year Treasury securities is 7.00 percent, and...
Questions
question
Mathematics, 21.08.2020 09:01
question
Biology, 21.08.2020 09:01
question
Mathematics, 21.08.2020 09:01
question
Mathematics, 21.08.2020 09:01
Questions on the website: 13722367