Suppose you observe two zero-coupon Treasury bonds. The first matures in one year, has face value $300, and has current price $288.46. The second matures in two years, has face value $200, and has current price $188.52. According to the expectations theory of the yield curve, what is the implied one-year interest rate from year 1 to year 2 (that is, the rate between one year from now and two years from now)? Is the yield curve upward or downward sloping?
a.
2.0% and downward sloping
b.
3.5% and upward sloping
c.
5.0% and downward sloping
d.
1.5% and upward sloping
Answers
The implied one-year interest rate from year 1 to year 2 is 2.01%. The yield curve is upward sloping.
Explanation: The expectations theory of the yield curve is used to understand the various changes in interest rates across different maturity periods of debt. The two zero-coupon Treasury bonds under observation are:1. The first bond with a maturity of one year, a face value of $300, and a current price of $288.462. The second bond has a maturity of two years, a face value of $200, and a current price of $188.52.The implied one-year interest rate from year 1 to year 2 (that is, the rate between one year from now and two years from now) can be calculated as follows:2-year yield = [(200/188.52)^(1/2)] - 1= 1.03%1-year yield = [(300/288.46)^(1/1)] - 1= 3.99%Implied 1-year interest rate from year 1 to year 2 = [(1 + 1-year yield) * (1 + 2-year yield)]^(1/2) - 1= [(1 + 0.0399) * (1 + 0.0103)]^(1/2) - 1= 2.01%Therefore, the implied one-year interest rate from year 1 to year 2 is 2.01%.The yield curve is said to be upward sloping because the yields on bonds with longer maturities are higher than the yields on bonds with shorter maturities. The upward slope of the yield curve indicates that the market anticipates interest rates to rise in the future.
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Related Questions
Accenture is helping a large retailer transform their online sales and services. The Data Analyst audits the client's customer journey and maps out the kind of data they need to collect at each touch point. How does this help the client achieve their objectives?
Answers
Answer: a. by updating their sales platform and adding new features
Explanation:
a. by updating their sales platform and adding new features
b. by shifting the focus away from the customer and towards new products or services
c. by identifying products that are poor sellers and removing them from the inventory
d. by increasing their customer knowledge and leveraging that information to improve customer experience.
From the question, we are informed that the data analyst audits the client's customer journey and then maps out the kind of data they will need to collect at every touch point.
This helps the client to achieve their objectives by updating their sales platform and adding new features. This is because we are informed at first that Accenture wants to help the retailer transform their online sales and services.
Accenture was created for helping clients in becoming cloud first business. Accenture extends technology sevices to its clients by brings together the capabilities and industry knowledge at one place.
Accenture helps the clients in transforming their online sales and services by mapping out the customer journey and the data they need to collect at the touch points.This is done after the audit of data of the client by data analyst.
Helping clients in achieving objectivesAccenture can help its clients by updating and analysing their sales platform and adding new and useful features to it which will help the clients in achieving objectives.
Therefore accenture can help in this manner to its clients in increasing and transforming their online sales.
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a. by updating their sales platform and adding new features
Explanation:
a. by updating their sales platform and adding new features
b. by shifting the focus away from the customer and towards new products or services
c. by identifying products that are poor sellers and removing them from the inventory
d. by increasing their customer knowledge and leveraging that information to improve customer experience.
From the question, we are informed that the data analyst audits the client's customer journey and then maps out the kind of data they will need to collect at every touch point.
This helps the client to achieve their objectives by updating their sales platform and adding new features. This is because we are informed at first that Accenture wants to help the retailer transform their online sales and services.
earley corporation issued perpetual preferred stock with a 12% annual dividend. the stock currently yields 8%, and its par value is $100. round your answers to the nearest cent. what is the stock's value?
Answers
The value of the perpetual preferred stock is $150. The value of the perpetual preferred stock can be calculated using the dividend discount model (DDM) formula.
The value of the perpetual preferred stock can be calculated using the dividend discount model (DDM) formula, which is V = D / R, where V is the stock's value, D is the annual dividend, and R is the required rate of return or yield.
In this case, the annual dividend is 12% of the par value, which is $100. Therefore, the annual dividend (D) is $100 * 0.12 = $12.
The stock currently yields 8%, so the required rate of return or yield (R) is 0.08.
Now, we can calculate the stock's value (V) using the DDM formula:
V = D / R
V = $12 / 0.08
V = $150
Therefore, the value of the perpetual preferred stock is $150.
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Do you think every working American needs a 401(k) account or an IRA? Why or why not?
No links
Need ASAP
Answers
Answer:
Both 401(k) accounts and IRAs are retirement savings accounts that allow individuals to save for retirement on a tax-advantaged basis. Contributions to these accounts are tax-deductible, and the earnings on the investments grow tax-free until they are withdrawn during retirement.
There are some benefits to having a 401(k) account or an IRA. They allow individuals to save for retirement in a tax-efficient way, and can provide a significant source of income during retirement. In addition, many employers offer matching contributions to 401(k) accounts, which can be a valuable incentive to participate.
However, there are also some drawbacks to these types of accounts. For example, they are subject to market fluctuations and the investment risk is borne by the individual. In addition, there are limits on how much can be contributed each year, which may not be enough to provide for a comfortable retirement.
Whether or not every working American needs a 401(k) account or an IRA depends on individual circumstances. For some people, these accounts may be a valuable tool for saving for retirement. For others, different types of retirement savings accounts or strategies may be more appropriate. Ultimately, it is up to each individual to determine the best approach for their own retirement planning.
Profit is _____.
the difference between business income and business expenses
a main motive for entrepreneurs starting new businesses
often calculated using a pie graph
all of the above
Answers
Answer:
ALL OF THE ABOVE
Explanation:
EDGE 2021 :D
department a uses 2,000 labor hours. department b uses 3,000 labor hours. calculate the allocation rate for allocating $20,000 total cost on labor hours.
Answers
The time it takes for the final amount to be $20,000 is 4 hours.
What is an equation?An equation is an expression that can be arithmetic or algebraic, which are related with an "=" sign that indicates equality of expressions.
If apartment A uses $2000 per hour in labor and apartment B uses $3000 per hour, to arrive at a total amount of $20000, we formulate the following equation:
Final amount = hours (amount A + amount B)
hours = x, this is our hourly variable20000 = x (2000 + 3000)
x = 20000 / (2000 + 3000)
x = 20000 / 5000
x = 4 hours
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______ has/have helped firms to concentrate on their core business.A. Supply chainsB. SchedulingC. OutsourcingD. ERPE
Answers
Outsourcing has helped firms to concentrate on their core business by enabling them to delegate non-core functions to external service providers. the correct option is c) Outsourcing
This allows companies to focus their resources on core activities such as product development, marketing, and customer service, rather than being bogged down by peripheral tasks. Outsourcing also provides access to specialized skills and expertise that might not be available in-house, leading to greater efficiency and cost savings.
In addition, outsourcing can help companies to become more flexible and responsive to changes in the market. By outsourcing non-core functions, firms can adapt more quickly to shifts in demand or changes in technology, without being constrained by internal resource limitations.
Outsourcing also reduces the need for capital investment in infrastructure and equipment, allowing firms to allocate resources more strategically.
Overall, outsourcing has become an increasingly popular strategy for firms looking to streamline operations, reduce costs, and focus on their core competencies. By outsourcing functions such as IT, accounting, and HR, firms can become more agile and better equipped to respond to the challenges of a rapidly changing business environment. Therefore the correct option is c) Outsourcing
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only people who own property need insurance
true or false
Answers
Answer:
false
Explanation:
pretty sure that is false as one can have life insurance without property.
Still double check...
The type of law that is derived from tradition and earlier judicial decisions is
known as
A. common law
B. administrative law
C. statutory law
D. court orders
Answers
Answer: The answer is a Common Law
Answer:
A .common law
Explanation:I just took the test
Do you think large multinational corporations in general like Wal-Mart, Apple, McDonalds and Frito Lay are good or bad for the world? Is "globalization" another word for “Americanization”? Why or why not? (3 points) Explain using complete sentences.
Answers
Answer:
I think multinational corporations in like these are bad. Because even people on diets or trying to diet, and people buy it for them not knowing its hard for them to say no.
Explanation:
Hope this helps!
t/f a patent gives the inventor exclusive right to make, use, or sell the item for usually 40 years.
Answers
A patent gives the inventor exclusive right to make, use, or sell the item for usually 40 years is False.
The length of a patent term can vary depending on the country or region, but 20 years is the standard.
A patent grants the inventor exclusive rights to make, use, and sell their invention for a limited period, but the duration of patent protection varies depending on the type of patent and the country in which it is granted.
In most countries, including the United States, the standard term for utility patents, which cover new and useful inventions, is 20 years from the filing date.
However, it is important to note that patent terms can be influenced by various factors, such as the filing date, patent office delays, patent term adjustments, and patent term extensions in specific industries (e.g., pharmaceuticals). The duration of patent protection can also vary for other types of patents, such as design patents or plant patents.
Therefore, the statement that a patent gives the inventor exclusive rights for usually 40 years is false. The standard term for most utility patents is 20 years.
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Sells overruns, leftover goods, and salvage lots?
Answers
Answer:Yes! As a matter of fact most of them do! There are some items of course that will not but as long as the are good in quality then they will take them.
Explanation:have a wonderful rest of your day :D
Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
Answers
Which federal regulatory agency would most likely bring a civil suit against a business that broke securities laws?
answer:
THE SEC
suppose the u.s. government wants to curtail imports. would it be likely to favor a tariff or a quota to accomplish its objective? why?
Answers
It will most likely favor a fee over a fee, since a fee increase revenue for the government while a fee does not.
If a domestic segment or industry is having difficulty competing with international competitors,the government may use tariffs to discourage consumption of imports and encourage consumption of domestic products, in the hope of supporting associated job growth, especially in manufacturing.A tariff is a tax placed on an imported good with the intent to limit the volume of foreign imports,protect domestic employment, reduce competition among domestic industries,and increase government revenue.the national economy from competition from foreign companies.A protectionist policy is one in which a country restricts the importation of goods and services produced in foreign countries.
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SOLVE THE GRAPH AND THE SUPPLY OR SHORTAGE AND THE PRESSURE OF PRICE
Answers
Answer:
probably cant figure it out
Explanation:
ABM Services paid a $4.15 annual dividend on a day it closed at a price of $54 per share. What
was the yield?
Answers
Answer:
Explanation:
94:15
Identify a recent business trend that could be contributing to the increased number of collusive frauds.
a. Increasing frequency of supplier alliances, and closer relationships between buyers and suppliers.
b. Reducing costs and product quality by using same suppliers.
c. Increased competition amongst suppliers.
d. Advances in technology that simplify the process of conducting business.
Answers
Supplier alliances are occurring more frequently, and suppliers and customers are getting to know one another better.
Fraud Collusion Dangers.
The standard acknowledges the dangers of collusion as well as the increased risk for the auditor in expressing an incorrect opinion, or "audit failure."
The issues with asset misappropriation and financial statement misstatement are brought up by the amended standard for auditors to consider.
Employees, suppliers, customers, and other parties must enlist the help of their co-conspirators in the first type of fraud, or at the very least work together to plan it. This is not a simple task, as it will be discussed below; in an asset theft scheme, coordination and recruitment demand a certain level of risk from the participants.
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Megan received a loan of $7,700 at 4.50% compounded monthly. She settled the loan by making periodic payments at the end of every three months for 5 years, with the first payment made 4 years and 3 months from now. What was the size of the periodic payments?
Answers
Megan received a loan of $7,700 at 4.50% compounded monthly. She settled the loan by making periodic payments at the end of every three months for 5 years, with the first payment made 4 years and 3 months from now.
What was the size of the periodic payments?
The periodic payment is $250.59.Megan received a loan of $7,700 at a 4.50% annual interest rate compounded monthly. To find the interest rate per period, divide it by 12. Thus, the interest rate is 0.045/12 = 0.00375.The length of time for the loan is five years, or 20 quarters.
The initial payment was made 4 years and 3 months before the loan ended. This is equal to 4.25 years or 17 quarters since there are four quarters in a year.
Since the loan is settled through periodic payments every three months, Megan will make a total of 20 – 17 = 3 × 4 = 12 payments.
To determine the size of the periodic payment, we will utilize the formula for annuities:
A = (Pmt x [1 – (1 + r)-n]) / r.
where A is the present value of the annuity or the amount of the loan, Pmt is the periodic payment, r is the interest rate per period, and n is the number of periods.
The present value of the annuity is equal to the loan amount, which is $7,700.
Substitute the known values into the formula to get:
$7,700 = (Pmt x [1 – (1 + 0.00375)-12]) / 0.00375.
Simplify and solve for Pmt:
Pmt = $250.59.
Answer: $250.59.
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When reagan took office, he brought with him a new economic philosophy. with the guidance of his economic advisors, he tried to stimulate the economy. to do this, his administration cut taxes and invested government money in job-creation programs. it seemed to work. in the eight years that reagan was president, the unemployment rate fell from 7.5 percent to 5.4 percent. during that same period, inflation dropped from 12.5 percent to 4.4 percent. which of these economic concerns was related to the achievements described in the passage? "baby boomers" did not want the jobs that had been created by government. reagan "froze" wages and prices to accomplish this economic recovery. inflation and unemployment rates declined, but stagflation did not. the nation’s deficit rose greatly as inflation and unemployment fell.
Answers
The nation’s deficit rose greatly as inflation and unemployment fell was an economic concern that was related to the achievement described in the passage.
What were the economic concerns in the passage?The passage explains that with the fall in tax revenue of the government and higher spending on employment programs, the federal deficit started to rise.
However, after some years, it could be seen that many businesses gained growth from government spending and created jobs with decreasing inflation rates.
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Answer:
it's D
Explanation:
Got right on edge 2023
Marsha wants to set up an irrevocable trust for her son. Which is she not able
to do after the trust is set up?
Answers
Answer:
irrevocable trust means that no one can get to the trust
problems created by differences between countries' antitrust rules, labor laws, patents, copyrights, taxes, product liability, and child labor laws relate to which forces in the global business environment?
Answers
The forces in the global business environment that relate to the problems created by differences between countries' anti-tourism rules are legal and regulatory forces.
How do legal and regulatory forces impact business?In the globalized business environment, companies seek to internationalize their activities with the objective of generating profit, but such a strategy must be analyzed in relation to the local market, since every country has a set of legal forces that provide the guidelines for a business. , such as taxes, fees and bureaucratization.
Therefore, legal and regulatory forces must be strictly followed by companies, and companies must choose the expansion strategy in a way that is aligned with their objectives to a country whose laws and regulations are more flexible and easier to implement.
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Answer:legal regulatory
Explanation:
What change could be considered an effective sign of economic recovery from the Great Recession?
employment level in architectural and engineering services at 18,000 jobs
unemployment levels at 8 percent
architecture and construction industry demonstrating a sustainable level of growth
the gross domestic product (GDP) growing at .5 percent
Answers
Answer:
The answer is C. architecture and construction industry demonstrating a sustainable level of growth
find the sum of 2x kg and 5x g. Give the answer in grammes.
Answers
Answer: 3,600 g
Explanation:
why does the hand and foot are the most abused part of the body ?pa help po
Answers
The hand and foot are the most abused part of the body because they are used to perform majority of the functions and movements in individuals.
What is Movement?This happens when an organism or object changes its position over time. The hand and foot are majorly involved in movement from one place to another.
They are also responsible in performing tedious physical activities which is why they are the most abused part of the body.
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write in brief about training
Answers
Answer:
Training is teaching, or developing in oneself or others, any skills and knowledge or fitness that relate to specific useful competencies. Training has specific goals of improving one's capability, capacity, productivity and performance.
Explanation:
Hope it helps you:))
suppose the reserve requirement is 20 percent. if a bank has checkable deposits of $4 million and actual reserves of $1 million, it can safely lend out multiple choice $1 million. $200,000. $1.2 million. $800,000.
Answers
The concept mentioned is the Required reserves. The answer is $200,000.
The reserve rate is the portion of reservable arrears that marketable banks must hold onto, rather than advance out or invest. This is a demand determined by the country's central bank, which in the United States is the Federal Reserve.
Given,
Reserve requirement rate = 20%
checkable deposit = $4 million
actual reserve =$1 million
Required reserve ratio = actual reserve * reserve rate
Required reserve ratio = 1,000,000 * 20%
Required reserve ratio = $200,000.
We can conclude by saying that a factual reserve of $1 million can safely advance out $200,000.
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Use the Internet to find an article that deals with the financial records of a business. Once you have found and read your article, record your summary and the link location using the following format in the box below. Be sure to include the URL links you used as resources in the space below. Submit your work below.
Paragraph #1 - Summary of article and link
Paragraph #2 - How it relates to entrepreneurship
Paragraph #3 - Your opinion of how the business will do in the next few months based on its financial records.
Answers
After using the Internet to search an article that deals with the financial records of a business is mentioned below:
Business Financial Record:The economic facts of a enterprise is a illustration of wherein the cash the enterprise earns comes from and wherein the cash is being directed in addition to the modern-day popularity of the cash earned, (source, U.S. Securities and Exchange Commission website) Financial facts includes; General accounting books, Banking facts, debtor's facts, creditor's facts, charges facts, tax facts, provide details, agreement facts, listing of assets, worker payments, cashbook facts, and inventory facts (Source Australian Charities and Not-for earnings fee website).
How it pertains to entrepreneurship?An entrepreneur, venturing right into a enterprise, wherein capital investments are and sources are put, sales is collected, shares are sold, and elements of manufacturing including device are purchased, can great keep the economic fitness of the via way of means of maintaining an correct and updated economic record, such that the coins flows are correctly control to achieve the proper fees and hobby fees from providers and creditors respectively .(Gateway to Commercial Finance website)
Your opinion of ways the enterprise will do withinside the following couple of months primarily based totally on its economic facts
A enterprise that always makes earnings and incurs a hard and fast charges is anticipated to grow, whilst a enterprise that has restrained sales is anticipated to embark on novel approaches.
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How much should someone’s loan payment be if their total income is $100?
Answers
Someone’s loan payment if their total income is $100 should be 30 times their monthly income.
The loan payments means the amounts required to be paid by the borrower in repayment of the loan pursuant to the provisions of the loan agreement, the note and the bond mortgage.
In most cases, lenders consider approximately 50-75% of the net income as instalments. In case your expenses exceed the percentage, banks either increase the tenure of the loan or reduce the amount sanctioned.
Additionally, to minimise the risk of default, lenders keep the EMIs of the loan to about 45-60% of your monthly income.
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assume zap industries reported the following adjusted account balances at year-end. 20212020 accounts receivable$ 1,650,200$ 1,300,920 allowance for doubtful accounts(88,000)(72,700) accounts receivable, net$ 1,562,200$ 1,228,220 assume the company recorded no write-offs or recoveries during 2021. what was the amount of bad debt expense reported in 2021? multiple choice $88,000 $72,700 $30,600 $15,300
Answers
If there have been no write-offs or recoveries, the expense for bad debt zap industries posted in 2021 was $15,200.
How are bad debt expenses determined?A debt expense is recognized when a payable is no longer collectable as a result of either a patient's inability to fulfill an unsecured balance due to bankruptcy or even other financial troubles.
How should a bad debt expense be recorded?You must debit debit and credit an allowance for dubious accounts in order to track the bad debt expenses. There is no counter accounting practice to report bad debt charges when using the write-off technique. As a result, on the balance sheet, the entire balance of receivable accounts will be shown as a current asset.
Briefing
The opening balance of the allowance account = $71,800
The closing balance of the allowance account = $87,000
The amount of bad debt expense = $87,000- $71,800
The amount of bad debt expense reported in 2021 is $15,200. = $15,200
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Please post detailed answers to the following questions. Please use complete sentences. Why is money management important? How would you rate your own money management?
Answers
One of the most crucial aspects of you financial life is money management.
Why is proper money management important?Reaching your financial objectives, paying off debt, and increasing your savings can all be facilitated by understanding how to budget, spend, and save.It is strongly advised that students create a budget for each category, such as food, phone, travel, etc. Any person should be very aware of where their funds are coming from and going. You may find out where you overspend and where you waste money by keeping track of your costs. Your money remains in good shape if you consistently spend less as you make.
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you plan to stay in a hotel for one week on your senior trip to cancun, mexico. the total cost is 7000 pesos. with an exchange rate of 11 pesos per dollar, what is the cost of your hotel in u.s. dollars? you plan to stay in a hotel for one week on your senior trip to cancun, mexico. the total cost is 7000 pesos. with an exchange rate of 11 pesos per dollar, what is the cost of your hotel in u.s. dollars? $77,000 $636.36 $823.53 $608.70 $777.77
Answers
If you plan to stay in a hotel for one week on your senior trip to cancun, mexico. the total cost is 7000 pesos. with an exchange rate of 11 pesos per dollar, the cost of your hotel in u.s. dollar is: B. $636.36.
How to find the cost?Using this formula to find the cost of your hotel in U.S dollar
Cost = Total cost / Exchange rate
Where:
Total cost = 7,000 pesos
Exchange rate = 11 pesos per dollar
Let plug in the formula
Cost = 7,000 pesos / 11 pesos per dollar
Cost = $636.36
Therefore the correct option is B.
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