subject
Business, 25.04.2020 02:57 amandasantiago2001

Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this year, 5% next year, and then 4.5% thereafter. The maturity risk premium is estimated to be 0.0006 × (t - 1), where t = number of years to maturity. What is the nominal interest rate on a 7-year Treasury security? Do not round intermediate calculations. Round your answer to two decimal places.

ansver
Answers: 2

Another question on Business

question
Business, 22.06.2019 14:40
Which of the following would classify as a general education requirement
Answers: 1
question
Business, 22.06.2019 14:50
One pound of material is required for each finished unit. the inventory of materials at the end of each month should equal 20% of the following month's production needs. purchases of raw materials for february would be budgeted to be:
Answers: 2
question
Business, 22.06.2019 20:10
Quick computing currently sells 12 million computer chips each year at a price of $19 per chip. it is about to introduce a new chip, and it forecasts annual sales of 22 million of these improved chips at a price of $24 each. however, demand for the old chip will decrease, and sales of the old chip are expected to fall to 6 million per year. the old chips cost $10 each to manufacture, and the new ones will cost $14 each. what is the proper cash flow to use to evaluate the present value of the introduction of the new chip? (enter your answer in millions.)
Answers: 1
question
Business, 22.06.2019 21:00
After hearing a knock at your front door, you are surprised to see the prize patrol from a large, well-known magazine subscription company. it has arrived with the good news that you are the big winner, having won $21 million. you have three options.(a) receive $1.05 million per year for the next 20 years.(b) have $8.25 million today.(c) have $2.25 million today and receive $750,000 for each of the next 20 years.your financial adviser tells you that it is reasonable to expect to earn 13 percent on investments.
Answers: 3
You know the right answer?
Determinants of Interest Rates The real risk-free rate is 4%. Inflation is expected to be 4% this ye...
Questions
question
Mathematics, 09.04.2020 03:52
question
Mathematics, 09.04.2020 03:53
question
Mathematics, 09.04.2020 03:53
question
Mathematics, 09.04.2020 03:53
question
Mathematics, 09.04.2020 03:53
Questions on the website: 13722359