Business, 17.06.2020 17:57 rodriguezbrian050702
Suppose the inflation rate is expected to be 6.75% next year, 4.75% the following year, and 3.35% thereafter. Assume that the real risk-free rate, r*, will remain at 2.45% and that maturity risk premiums on Treasury securities rise from zero on very short-term bonds (those that mature in a few days) to 0.2% for 1-year securities. Furthermore, maturity risk premiums increase 0.2% for each year to maturity, up to a limit of 1.0% on 5-year or longer-term T-bonds.
Required:
a. Calculate the interest rate on 1-year Treasury securities. Round your answer to two decimal places.
b. Calculate the interest rate on 2-year Treasury securities. Round your answer to two decimal places.
c. Calculate the interest rate on 3-year Treasury securities. Round your answer to two decimal places.
d. Calculate the interest rate on 4-year Treasury securities. Round your answer to two decimal places.
e. Calculate the interest rate on 5-year Treasury securities. Round your answer to two decimal places.
f. Calculate the interest rate on 10-year Treasury securities. Round your answer to two decimal places.
g. Calculate the interest rate on 20-year Treasury securities. Round your answer to two decimal places.
Answers: 1
Business, 22.06.2019 20:00, wallsdeandre6927
Richard is one of the leading college basketball players in the state of florida. he also maintains a good academic record. looking at his talent and potential, furman university offers to bear the expenses for his college education.
Answers: 3
Business, 22.06.2019 21:00, gd9075
Haley photocopying purchases a paper from an out-of-state vendor. average weekly demand for paper is 150 cartons per week for which haley pays $15 per carton. in bound shipments from the vendor average 1000 cartoons with an average lead time of 3 weeks. haley operates 52 weeks per year; it carries a 4-week supply of inventory as safety stock and no anticipation inventory. the vendor has recently announced that they will be building a faculty near haley photocopying that will reduce lead time to one week. further, they will be able to reduce shipments to 200 cartons. haley believes that they will be able to reduce safety stock to a 1-week supply. what impact will these changes make to haley’s average inventory level and its average aggregated inventory value?
Answers: 1
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