subject
Business, 16.03.2020 20:23 shashi2728

Suppose the interest rate on a one-year bond today is 6% per year, the interest rate on a one-year bond one year from now is expected to be 4% per year, and the interest rate on a one-year bond two years from now is expected to be 3% per year. The risk premium on a two-year bond is 0.5% per year and the risk premium on a three-year bond is 1 .0% per year. In equilibrium, what is the interest rate today on a two-year bond? On a three-year bond? What is the shape of the yield curve?

ansver
Answers: 2

Another question on Business

question
Business, 21.06.2019 23:10
At the end of the current year, $59,500 of fees have been earned but have not been billed to clients. required: a. journalize the adjusting entry to record the accrued fees on december 31. refer to the chart of accounts for exact wording of account titles. b. if the cash basis rather than the accrual basis had been used, would an adjusting entry have been necessary?
Answers: 2
question
Business, 22.06.2019 07:10
mark, a civil engineer, entered into a contract with david. as per the contract, mark agreed to design and build a house for david for a specified fee. mark provided david with an estimation of the total cost and the contract was mutually agreed upon. however, during construction, when mark increased the price due to a miscalculation on his part, david refused to pay the amount. this scenario is an example of a mistake.
Answers: 1
question
Business, 22.06.2019 08:30
In risk management, what does risk control include? a. risk identification b. risk analysis c. risk prioritization d. risk management planning e. risk elimination need this answer now : (
Answers: 3
question
Business, 22.06.2019 14:50
The following information is needed to reconcile the cash balance for gourmet catering services. * a deposit of $5,600 is in transit. * outstanding checks total $1,000. * the book balance is $6,400 at february 28, 2019. * the bookkeeper recorded a $1,800 check as $17,200 in payment of the current month's rent. * the bank balance at february 28, 2019 was $17,410. * a deposit of $400 was credited by the bank for $4,000. * a customer's check for $3,300 was returned for nonsufficient funds. * the bank service charge is $90. what was the adjusted book balance?
Answers: 1
You know the right answer?
Suppose the interest rate on a one-year bond today is 6% per year, the interest rate on a one-year b...
Questions
question
Mathematics, 30.05.2020 03:02
question
Mathematics, 30.05.2020 03:02
question
Mathematics, 30.05.2020 03:02
question
Mathematics, 30.05.2020 03:02
question
Mathematics, 30.05.2020 03:02
question
Mathematics, 30.05.2020 03:02
question
History, 30.05.2020 03:02
question
History, 30.05.2020 03:02
Questions on the website: 13722360