Real risk-free interest rate – 4% Constant inflation premium – 7% Maturity risk premium – 1% Default risk premium for AAA bonds – 3% Liquidity premium for long-term treasury bonds – 2 % Assume that a highly liquid market does not exist for long-term T-bonds and the expected rate of inflation is constant. Given these conditions, the nominal risk-free rate for the T-bill is _______, and the rate for the long-term T-bonds is ____________ .

Answers

Answer 1

The nominal risk-free rate for the T-bill is 18%, and the rate for the long-term T-bonds is 20%.

Calculate the nominal risk-free rate and the rate for the long-term T-bonds using this formula;

Nominal Risk-Free Rate = Real Risk-Free Rate + Inflation Premium + Risk Premium

Given;

Real Risk-Free Interest Rate = 4%Inflation Premium = 7%Default Risk Premium = 3%Maturity Risk Premium = 1%

Calculate the nominal Risk-Free Rate for the T-bill

Nominal Risk-Free Rate = 4% + 7% + 1% + 3%Nominal Risk-Free Rate = 15% + 3%Nominal Risk-Free Rate for the T-bill = 18%

Calculate the rate for the long-term T-bonds

Nominal Risk-Free Rate = 4% + 7% + 1% + 3% + 2%Nominal Risk-Free Rate = 15% + 3% + 2%Nominal Risk-Free Rate for long-term T-bonds = 20%

Therefore, the nominal risk-free rate for the T-bill is 18%, and the rate for the long-term T-bonds is 20%.

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Related Questions

When the business cycle or economic activity is declining, the economy is said to be in....?

A
the trough

B
contraction

C
expansion

D
recovery

Answers

contraction is to decline the answer is B

Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?.

Answers

Consumer and producer surplus.

A manufacturer estimates that when x

units of a particular commodity are produced, the total cost will be:

C(x)=18x2+3x+98

dollars,

and furthermore that all x

units will be sold when the price is:

p(x)=13(75−x)

dollars per unit.

a. Find the marginal cost,

b. Find the marginal revenue,

c. Estimate the marginal profit from producing the 37
-th unit. What is the actual cost of producing the 37-th unit?

Answers

a. To find the marginal cost, we need to calculate the derivative of the total cost function C(x) with respect to x:

C'(x) = d/dx(18x^2 + 3x + 98)

Taking the derivative term by term, we get:

C'(x) = 36x + 3

Therefore, the marginal cost is 36x + 3 dollars.

b. To find the marginal revenue, we need to calculate the derivative of the revenue function R(x) with respect to x. Revenue is calculated by multiplying the price by the number of units sold:

R(x) = p(x) * x

R(x) = 13(75 - x) * x

Now, let's find the derivative:

R'(x) = d/dx(13(75 - x) * x)

Applying the product rule and simplifying, we get:

R'(x) = 13(-1)(x) + 13(75 - x)

R'(x) = -13x + 975 - 13x

R'(x) = -26x + 975

Therefore, the marginal revenue is -26x + 975 dollars.

c. To estimate the marginal profit from producing the 37th unit, we need to subtract the marginal cost from the marginal revenue at x = 37:

Marginal Profit = Marginal Revenue - Marginal Cost

Substituting the values we calculated earlier:

Marginal Profit = (-26 * 37 + 975) - (36 * 37 + 3)

Simplifying:

Marginal Profit = -962 - 1331

Marginal Profit = -2293 dollars

The estimated marginal profit from producing the 37th unit is -2293 dollars.

To find the actual cost of producing the 37th unit, we substitute x = 37 into the total cost function C(x):

C(37) = 18(37)^2 + 3(37) + 98

Calculating this expression, we find that the actual cost of producing the 37th unit is 25,507 dollars.

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when you are reading and come to an unknown word what should you do first? a.look for clues in the text b. skip it and keep reading c.look it up in a dictnoiry d.ask the teacher what it means. make sure to have an explanation

Answers

Answer:

I sound it out

Explanation:

and the word is conjunction

what is the relationship between a perfectly competitive firm's marginal cost curve and its supply curve?

Answers

Marginal revenue for a company with perfect competition is the same as average revenue and pricing. This suggests that at values bigger than the average variable cost, the firm's short-run supply curve is its marginal cost curve. The company closes if the price falls below the average variable cost.

The increased total revenue produced by increasing product sales by one unit is known as marginal revenue and is a key topic in microeconomics. It is necessary to compare the aggregate advantages a firm gained from the quantity of a good or service produced during the previous period and the present period with an additional unit increase in the rate of production in order to calculate the value of marginal revenue. Together with marginal cost, marginal revenue is a key instrument for economic decision-making in the context of a corporation. In a market with perfect competition, the incremental profit made by selling one more unit of a good is equal to the price the company can charge the buyer of the good.

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theg3eu3guyrgufgrgifrggiygiyrgirgigv

Answers

Answer:

I xixed3odn3dno3xnomxend4ond4imx74d diendeinxe said einxiw dueoxni3d 3id 2did 2iz

if the elasticity of demand is 5, and the price of a cup of coffee is $2, how much would the seller need to reduce her price in order to increase the quantity sold by 50 percent?

Answers

To increase the quantity sold by 50%, the seller needs to reduce the price by $0.2 if the elasticity of demand is 5.

Here are the steps involved in solving this problem:

Percentage price reduction = (Percentage increase in quantity sold) / (Elasticity of demand)

Calculate the percentage increase in quantity sold: 50% / 100% = 0.5

Divide the percentage increase in quantity sold by the elasticity of demand: 0.5 / 5 = 0.1

Multiply the result by the initial price to find the amount of price reduction needed: 0.1 * $2 = $0.2

Therefore, the seller would need to reduce her price by $0.2 in order to increase the quantity sold by 50 percent.

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What is the main difference between a market and a command economy?

Answers

Answer:

Market economies utilize private ownership as the means of production and voluntary exchanges/contracts. In a command economy, governments own the factors of production such as land, capital, and resources. Most nations operate largely as a command or market economy but all include aspects of the other.

Users can easily judge the impact on profits of changes in selling price, cost or volume when using an income statement constructed under the ______ approach. Multiple choice question.

Answers

The income statement constructed under the contribution approach, allow Users to easily judge the impact on profits of changes in selling price.

What is contribution approach ?

contribution approach  can be explained as the presentation format under the income statement, which involves  aggregation and deduction of variable cost from revenue.

 This  aggravation is done to arrive at a contribution margin and allow Users to easily judge the impact on profits.

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What are some hazards in Modeling?

Answers

Answer:

Some hazards could be starvation (with some agencies), you could slip and fall, cross contamination from sharing things, sexual dangers, stalking and stuff like that.

Answer:

health risk

financial risk

traveling risk

Note that common tasks are listed toward the top, and less common tasks are listed toward the bottom. According to
O*NET, what are common tasks performed by Graphic Designers? Check all that apply.
conferring with clients
creating designs, concepts, and sample layouts
scheduling projects for clients
hiring and training new team members
determining size and arrangement of illustrative material and copy
developing graphics and layouts

Answers

Answer:

creating designs, concepts, and sample layouts

scheduling projects for clients

determining size and arrangement of illustrative material and copy

developing graphics and layouts

Answer:1,2,5,6.

Explanation:

How are instrument families created?

Answers

Musical instruments are grouped into families based on how they make sounds. In an orchestra, musicians sit together in these family groupings. But not every instrument fits neatly into a group. For example, the piano has strings that vibrate, and hammers that strike.

Hope I helped ❤️
Plz mark me brainiest? :)

Assume a company has two divisions, G and H. The company's overall sales, overall contribution margin ratio, common fixed expenses, and net operating income are $500,000, 48%, $50,000, and $10,000 respectively. If division H has a segment margin of $20,000, then what is the segment margin for division G?

A. $80,000

B. $70,000

C. $40,000

D. $100,000

Answers

We know that the net operating income for the company is $10,000, and the segment margin for division H is $20,000. Therefore, the segment margin for division G can be calculated by subtracting the segment margin for division H from the net operating income:

To find the segment margin for division G, we can use the formula:

Segment Margin = Contribution Margin Ratio × Sales - Common Fixed Expenses.

Given that the overall sales for the company is $500,000, the overall contribution margin ratio is 48%, and the common fixed expenses are $50,000, we can substitute these values into the formula:

Segment Margin = 48% × $500,000 - $50,000
Segment Margin = $240,000 - $50,000
Segment Margin = $190,000.

Segment Margin for division G = Net Operating Income - Segment Margin for division H
Segment Margin for division G = $10,000 - $20,000
Segment Margin for division G = -$10,000.

Since the segment margin cannot be negative, we can conclude that the segment margin for division G is $0.

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The segment margin for division G is $170,000. The segment margin for division G can be calculated using the following steps:

1. Calculate the overall contribution margin for the company:
  Overall contribution margin = Overall sales * Overall contribution margin ratio
  Given: Overall sales = $500,000 and Overall contribution margin ratio = 48%
  Overall contribution margin = $500,000 * 48% = $240,000

2. Calculate the total segment margin for both divisions (H and G):
  Total segment margin = Overall contribution margin - Common fixed expenses
  Given: Common fixed expenses = $50,000
  Total segment margin = $240,000 - $50,000 = $190,000

3. Determine the segment margin for division H:
  Given: Segment margin for division H = $20,000

4. Calculate the segment margin for division G:
  Segment margin for division G = Total segment margin - Segment margin for division H
  Segment margin for division G = $190,000 - $20,000 = $170,000

Therefore, the segment margin for division G is $170,000.

So, the correct answer is not provided in the options.

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Describe how a firm would need to adapt to the marketing of each of these products to suit the conditions of China, Germany and Saudi Arabia

Answers

Products must be adapted to accommodate national differences arising from customer preferences and each market’s economic conditions, climate, culture and language. Think about the following products: packaged flour, swimsuits, textbooks and cars. For each of these products, describe how a firm would need to adapt different marketing program elements to suit conditions in Australia, China and Saudi Arabia. Keep in mind that China is an emerging market with low per capita income, Saudi Arabia is an emerging market with a conservative culture rooted in Islam, and Australia is an advanced and liberal economy. In developing your answer for each product, think especially about the nature of the product, its pricing and distribution and how a firm would promote it in the market.

Terrell has $300 to open a checking account. He plans to use the ATM four times per month at his local branch. He does not overdraft his account.

Answers

Answer:

Terrell needs a checking account that offers him either no fees at all for ATM withdrawals at the local branch, or that offers him the lowest fees in the market.

The reason is that Terrell will open his account with a relatively small amount of $300, and he plans to make 4 withdrawals in total. Given the small balance and the quantity of withdrawals, a high fee could easily represent an important percentage of the total balance, making him lose money, essentially.

Answer:

B

Explanation:

The next time you need to make a choice, your brain will use what what method?

Answers

Answer:

Imagine you have just flicked a lighter. If you don’t see the flame, you will naturally try a second time. If after the second attempt it does not strike a flame, you will repeat your action again and again until it does. Eventually, you’ll see the flame and you’ll know that your lighter works. But what if it doesn’t? How long are you going to flick the lighter until you decide to give up?

Our everyday life is full of such decision dilemmas and uncertainty. We constantly have to choose between options, whether we make the most ordinary decisions – should I continue flicking this lighter? – or life-changing choices – should I leave this relationship? We can either keep on doing what we are already used to do, or risk unexplored options that could turn out much more valuable.

Some people are naturally inclined to take more chances, while others prefer to hold on to what they know best. Yet being curious and explorative is fundamental for humans and animals to find out how best to harvest resources such as water, food or money. While looking at the Belém Tower – a symbol of Portugal’s great maritime discoveries – from my office window, I often wonder what drives people to explore the unknown and what goes on in their brains when weighing pros and cons for trying something new. To answer these questions, together with Dr. Zachary Mainen and his team of neuroscientists, we investigate how the brain deals with uncertainty when making decisions.

Explanation:

It is well known that the decision-making process results from communication between the prefrontal cortex (working memory) and hippocampus (long-term memory). However, there are other regions of the brain that play essential roles in making decisions, but their exact mechanisms of action still are unknown.

All of the following are true about health insurance except:

Answers

The option that's not true about health insurance is that A. People with health insurance can skip lines in emergency rooms.

What is health insurance?

It should be noted that health insurance is a contract that requires a company to pay healthcare costs in exchange for a premium.

In this case, the option that's not true about health insurance is people with health insurance can skip lines in emergency rooms.

In conclusion, the correct option is A.

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Complete question:

All of the following are true about health insurance except:

a. People with health insurance can skip lines in emergency rooms

b. Health insurance protects you financially from medical emergencies.

c. Health insurance lowers your risk of acquiring medical debt.

d. Health insurance allows some medical procedures to be covered by a low-cost co-pay.

Which type of skills can help you determine what your customers want?
A. Speaking skills
B. Writing skills
C. Listening skills
D. Math skills

Please select the best answer from the choices provided A B C D

Answers

Answer:

C. Listening skills

Explanation:

By listening to a customer, you can determine what they want.

Improving listening skills can help you better understand and help customers.

I hope this helps.

Answer: C edge 2021

Explanation:

ur a real one :)

which of the following scenarios is an example of how the media influences political participation?

Answers

The media influences political participation by covering engaging events or stories, educating the public, raising awareness, and shaping public opinion through selective coverage.

One of the following scenarios is an example of how the media influences political participation, and it's as follows: The media's influence on political participation is significant, as it can help or hinder a politician's campaign. One way the media influences political participation is by covering a specific event or story that engages the public's interest.

By doing this, the media can encourage political participation by educating the public and raising awareness on a particular subject. Furthermore, the media can also play a role in shaping public opinion by selectively highlighting or downplaying certain stories, which can affect the public's perception of an issue.

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ad hominem
red herring
false dilemma
false analogy
Excerpt
Logical
Fallacy
Our current mayor has been in politics for over 25 years. It is time
that we have a younger mayor, so we can have fresh ideas to make our city better.
is true that the city council id approve a tax for a new road
construction project. However, our city needs to attract more businesses to stabilize
our economy
bring to work instead of using public transportation is the net
eating everything on your plate it wastes veueble resources​

Answers

Bring to work instead of using public

Explain the role of public relations in developing and maintaining a corporate image.

Answers

By overseeing communication and relationships between an organisation and its stakeholders, public relations plays a critical part in creating and sustaining a company image.

To influence the perception, reputation, and overall image of the business, strategic communication is used. To improve the public's view of the company, public relations experts take part in activities like media relations, crisis management, community involvement, and employee communications. Public relations contributes to the development of trust, credibility, and goodwill among stakeholders by clearly articulating the company's ideals, accomplishments, and social responsibility efforts. It helps build the company's brand, draw in clients, investors, and talent while minimising reputational hazards.

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A _____ identifies threats and opportunities in the external environment as well as organizational strengths and weaknesses .

Answers

A SWOT analysis identifies threats and opportunities in the external environment as well as organizational strengths and weaknesses .

What is a SWOT analysis?

This is a study that an organization or a corporation would engage in just so theyt can identify their strengths as well as their weaknesses.

This is a strategic planning and management strategy that organizations use.

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in which situation is a country most likely to choose a fixed exchange rate for its currency

Answers

Probably the best reason to adopt a fixed exchange rate system is to commit to a loss in monetary autonomy. This is necessary whenever a central bank has been independently unable to maintain prudent monetary policy, leading to a reasonably low inflation rate.


most likely the best motivation to embrace a proper conversion scale framework is to focus on a misfortune in money related independence. This is fundamental at whatever point a national bank has been freely unfit to keep up with judicious money related strategy, prompting a sensibly low expansion rate.

4. Determine the importance of environment conservation from the business viewpoint​

Answers

Answer:

Economic expansion is not what is causing the climate crisis; rather, the lack of effective public policy meant to lower greenhouse gas emissions is to blame. As long as regulations are in place to limit the environmental effects of the goods and services we produce and use, there is no conflict between capitalism and environmental protection. With those regulations in place, consideration for environmental sustainability can and will be factored into every decision made by the private, nonprofit, and governmental organizations from which we all benefit.

The sustainability of the environment is not affected in the same way by all consumption patterns. The emergence of more sustainable lifestyles can be seen in consumption trends. Young Americans, for instance, don't seem as interested in buying cars as their parents and older siblings did. The advancement of the mobile phone has made ride-sharing, bike-sharing, and other transit options possible.

However, taking an Uber or driving your own car are both considered economic activities for the purposes of calculating GDP. These consumption patterns are typically not the subject of policymaking because they are quite influenced by shifting social norms than by governmental action. The only exceptions might be behavior that directly harms other people, like drinking and driving or smoking in public. New technologies can also lessen the impact of consumption on the environment.

Ironically, some environmentalists and some deniers of global warming share the view that environmental protection and economic growth must be compromised. Both can and must be done. Because most people in the developed world enjoy their way of life and won't give it up, we cannot stop investing in economic development. Environmental advocates will fail politically if they make such a request.

Explanation:

Political and business leaders may not care if economic growth harms the environment, and environmentalists may disagree, contending that neither economic growth nor environmental harm can coexist.

Even by itself, environmental protection promotes economic expansion. The air pollution control technologies we install on power plants and automobiles are made and sold by a third party. Additionally, environmental amenities are valuable.

Do you think that marketers view the changes taking place in promotions and advertising as exciting or burdensome challenges? Explain.

Answers

Answer: Burdensome

Explanation: Because they may now have to change their ideas they had planned prior to the changes, because these ideas may not market as well as they would have before the changes.

a broker acts as an agent in all of the following functions except: select one: a. leasing property b. selling property c. appraising property d. exchanging property

Answers

A broker acts as an agent in all of the following functions except: exchanging property.

Broker is a term which is used for an individual who charges a commission for executing buy and sell orders. They play an important role for guiding the buyer through all the related paperwork.

The one of the most important function of a broker is only to solve a client's problem for some fee. Secondary functions are such as  lending to clients for margin transactions, and it also involves providing information support regarding the situation on trading platforms.

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Do you think it’s better for companies to diversify their product mix or stick with one particular type of product? Explain.

Answers

The decision to diversify or stick with one particular product type depends on the company's goals, resources, and the market conditions. Some companies may choose to mix both strategies by creating a diverse portfolio of products under one brand, while others may focus on a core product while expanding into complementary offerings.

Sticking with one particular type of product allows companies to become experts in that area. They can streamline their production processes, reduce costs, and develop a loyal customer base. This strategy can be effective when the market for that product is stable and there is little competition.

On the other hand, diversifying a company's product mix can offer benefits such as reducing risk, capturing new market opportunities, and boosting revenue. By offering a range of products, companies can cater to different customer needs and preferences. However, diversification requires more resources and can be a complex process that carries risk if the new product fails to gain traction.

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What will the real value of $100 be in 7 years if you hide the money under your mattress and the inflation rate is 2%

Answers

The real value of the money after 7 years, if the money is hidden under the mattress and the inflation rate, is $ 86. 81.

How to find the real value ?

If the inflation rate is 2%, the value of money is expected to decrease by 2% per year.

In 7 years therefore, you can use the future value formula to find the real value of the money to be :

= Value today x ( 1 - rate ) ^ number of years

This gives:

= 100 x ( 1 - 2 % ) ⁷

= $ 86. 81

This means that if you hide $100 under your mattress today, in 7 years, its real value will be $86.81 in terms of what it can buy.

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Question 2 of 10
Jeremy doesn't have a lot of money to spend on advertising, but he knows his
target audience are local outdoor enthusiasts. Which type of media format
should Jeremy use to advertise?
A. Local newspapers
B. Billboards on busy streets
C. National television commercials
D. Plane banners

Answers

Answer:

B. Billboards on busy streets

Explanation:

Billboard advertising involves making use of large-scale print advertisements to market a company's products and services.  Billboards are strategically mounted in high traffic areas to pass their message to as many people as possible. Busy highways and streets, strategically located buildings are ideal places to put billboards.

Jeremy should consider using billboards for the following reasons.

His clients are local outdoor enthusiasts;  he needs to find out their favorite destinations are put billboards along the way. This way, he will capture their attention.Billboards are less costly compared to other advertisement options, such as television or plane banners.Billboards will be effective in his case. Because his clients are local, and billboards remain in place for several days or weeks,  his target clients will not fail to spot them.

Answer:local news papers

Explanation:

What were the most important factors that led to the midwest becoming known as the rust belt?

Answers

The Rust Belt became an industrial hub due to its proximity to the Great Lakes, canals, and rivers, which allowed companies to access raw materials and ship out finished products. These were the most important factors.
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can you please solve this? What is the primary function of the contractile vacuoles? please see the attached Which of the following factors cause variations in seawater density, leading to ocean currents? 1- Sun's gravity 2- Wind 3- Moon's gravity 4- Temperature and salinity HELPPPPy=x+12 solve for x The Telecommunications Act of 1996 made it more difficult to own mutiple radio and television stations. - True or False?2. The first television technology to allow for time-shifting was?a)DVRb)cablec)VCRd)interactive television3. The Birth of A Nation was the first feature-length silent film produced in America - True or False?4. Obscenity has First Amendment protection. - True or False?5. The Potter Box is a tool for ______________ decision making.a)ethicalb)clearc)fundamentald)creative6. Before filming begins, filmmakers go through the ________________________ phase.-Fill in the blank Kelly wants to decrease her daily sugar intake from 40 grams of sugar to 30 grams of sugar. By what percentage does Kelly want to decrease her daily intake of sugar? O 10% O 25% O 75% O 905 According to Krutz, a tool that presidents use to exert more power is: ______________ a. Claiming executive privilege b. Executive orders c. Executive agreements d. All of the other answers are correct Controllable fixed costs are deducted from the contribution margin to arrive atA. income from operationsB. net incomeC. controllable marginD. realized income b. The total stratum area is 803.7 km . Using the mean elephant density for the stratum that yo calculated, calculate an estimated # of elephants that could be found in this stratum Point A is at (-2, 4) and point B is at (7,3).What is the midpoint of line segment AB? According to the U.S. Census, the proportion of adults in a certain county who owned their own home was 0.71. An SRS of 100 adults in a certain section of the county found that 65 owned their home. What represents the approximate probability of obtaining a sample of 100 adults in which 65 or fewer own their home, assuming that this section of the county has the same overall proportion of adults who own their home as does the entire county? Zinc has a work function of 4.3 eV. a. What is the longest wavelength of light that will release an electron from a zinc surface? b. A 4.7 eV photon strikes the surface and an electron is emitted. What is the maximum possible speed of the electron? what what is climate Two-fifths of Aikas stamp collection are European stamps.One-half of her European stamps are from France.What fraction of Aikas stamps are from France?1. 4/52. 1/53. 1/104. 3/10 if the pharmacy stocks sodium chloride 4 meq/ml, how many milliequivalents of sodium chloride are in 30 ml? Hurry ASAP i have 30 minutes to turn this in NO LINKS PLEASE!Metal Mass (9) Volume (cm) Gold 77.28 4.00 Platinum 64.35 3.00 Tungsten 96.75 5.00 Silver 63.00 6.00 29) A jeweler has selected a metal with a density of 19.35 g/cm' to make a ring. Which of the metals was selected? A) GoldB) PlantinumC) Sliver D) Tungsten A given mass of gas occupied 150 cm cube at 27 degrees C and pressure of 1.013x10^5 Newton per metre square. calculate the temperature at which it volume doubled at the same pressure a patient was body surfing in the ocean and sustained a cervical spinal cord fracture. a halo traction device was applied. how does the patient benefit from the application of the halo device?