19. If the expected path of one-year interest rates over the next three years is 2 percent, 2.4 percent, 2.5 percent, and the three-year term premium is 0.3 per cent, then theory suggests that today's interest rate on a three-year bond should be: (a) 2.5 per cent (b) 2.6 per cent (c) 2.7 per cent (d) 2.8 per cent

Answers

Answer 1

According to the expectations theory of the term structure of interest rates, the long-term interest rate is the geometric average of expected future short-term interest rates plus the term premium. the answer is 2.69% + 0.1% = 2.7%.

So, the expected average of the one-year interest rates over the next three years is:

\([(1 + 0.02) x (1 + 0.024) x (1 + 0.025)]^(1/3) - 1 = 0.0239\)

Adding the term premium of 0.3%, we get:

0.0239 + 0.003 = 0.0269 or 2.69%

However, since the question is asking for the interest rate on a three-year bond, we need to add another 0.1% to account for the fact that the bond has a longer maturity than the average of the expected short-term rates.

Therefore, the answer is 2.69% + 0.1% = 2.7%.

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Related Questions

How do banks make profits?

Answers

They make profits by people going into their banks

Answer:

Banks make money from service charges and fees. Banks also earn money from interest they earn by lending out money to other clients.

Explanation:

which of the following would not appear in a closing entry?
a. Salary Expense
b. Interest Income
c. Accumulated Depreciation
d. Retained Earnings

Answers

Accumulated Depreciation would not appear in a closing entry.

The Accumulative depreciation of an asset up to a certain point in its life is known as accumulated depreciation. As a counter asset account, accumulated depreciation's natural balance is a credit that lowers the asset's total value.

According to generally accepted accounting standards (GAAP), the matching principle requires that costs be allocated to the same accounting period during which the relevant revenue is realized. A firm will deduct a percentage of an asset's value through depreciation over the course of each year of its useful life. This means that the expense related to using up the asset is reported every year it is put to use and generates income in accounting standards.

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Evidence suggests that people tend to default to cooperative strategies in interpersonal interactions unless there is a clear signal that ________.

Answers

Evidence suggests that people tend to default to cooperative strategies in interpersonal interactions unless there is a clear signal that they are faced with a competitive person.

A cooperative strategy (or cooperation strategy) is an organization's attempt to collaborate with other businesses in order to achieve its goals.

Collaboration has the potential to reduce costs, strengthen supply chains, reduce competition, add resources/knowledge/skillsets, and generate other synergies.

Cooperation can occur between suppliers, buyers, unrelated businesses, or even competitors and antitrust law may apply.

The majority of the time, this collaboration takes the form of a strategic alliance.

Perceived conflict occurs when one or more parties are aware of the existence of conditions conducive to conflict.

This does not imply that it is currently personalized.

Hence, Evidence suggests that people tend to default to cooperative strategies in interpersonal interactions unless there is a clear signal that they are faced with a competitive person.

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In many instances the most appropriate way for a firm to cope with an event that leads to negative public relations is to

Answers

The most appropriate way for a firm to cope with negative PR is to respond promptly, take responsibility, communicate openly, and actively work towards resolving the issue. This approach can help minimize the impact on the firm's reputation and regain p

In many instances, the most appropriate way for a firm to cope with an event that leads to negative public relations is to respond proactively and transparently.

When faced with a PR crisis, it is crucial for the firm to acknowledge the issue promptly and take responsibility for any mistakes or wrongdoing. This can help regain trust and credibility from the public.

One effective strategy is to issue a sincere and genuine apology, demonstrating empathy and understanding towards those affected by the event.

The firm should also communicate its commitment to addressing the issue and preventing similar incidents in the future.

Open and honest communication is key during a

. The firm should provide accurate information and updates to the public, utilizing various communication channels such as press releases, social media, or official statements. It is essential to address concerns, answer questions, and provide reassurance to the public.

Additionally, firms can consider engaging with stakeholders, including customers, employees, and the media, to gain insights, address concerns, and rebuild relationships.

Collaborating with reputable third parties, such as industry experts or non-profit organizations, can also help demonstrate the firm's commitment to positive change.

Overall, the most appropriate way for a firm to cope with negative PR is to respond promptly, take responsibility, communicate openly, and actively work towards resolving the issue.

This approach can help minimize the impact on the firm's reputation and regain public trust.

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A local boat manufacturing company has been family owned for more than 70 years, and it is the largest employer in the county. The boat company demonstrates corporate social responsibility by:________

Answers

The boat company shows corporate social responsibility by their initiative to start a free trade school that would train people to be welders, electricians, plumbers, or boat builders.

Corporate social responsibility (CSR) is a self-policing business model that aids an organization in being socially responsible to itself, its stakeholders, and the general public. Companies can be aware of the kind of effect they are having on all facets of society, including the economic, social, and environmental, by engaging in corporate social responsibility, also known as corporate citizenship. When a firm practices corporate social responsibility (CSR), it means that it operates in a way that benefits the environment and society rather than harming it.

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help plz
Which of the following would be included in the U.S. gross domestic product
(GDP) measure?
O A. The value of Apple products made in Canada
B. The value of Levi jeans made in Malaysia
C. The value of Toyota cars made in California
D. The value of Nike shoes produced in China
SUBMIT

Answers

The correct option is C. The value of Toyota cars made in California would be included in the U.S. gross domestic product (GDP) measure

Gross domestic product (GDP) is the accepted unit of measurement for the value added produced by the production of goods and services in a nation over a specific time period.

Why is GDP measured?

The term "gross domestic product," or "GDP," refers to the total monetary value, or "market value," of finished products and services produced inside a nation over a specific timeframe, usually a year or quarter. In this regard, it serves as a gauge of domestic output and a tool for assessing the state of an economy.

The quantity of all commodities and services produced is multiplied by their prices, and the resulting amount is used to calculate GDP. GDP can be calculated using either the total amount of goods and services purchased or the amount of production.

Thus, As a result, it also accounts for income generated from that output or total expenditures on finished goods and services and fewer imports.

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Which economic effect does a central bank hope to achieve by buying back large amounts of treasury security

Answers

A. It hopes to reduce the amount of money available for lending.

Explanation:

Usually, the central bank(Federal reserve) control the supply of money in circulation in the economy so that the nation's economy would be healthy. One of the ways through which the federal reserve controls the quantity of money in circulation is by selling or purchasing of government securities through a process known as open market operation.

If the federal reserve sells government securities such as treasury bills, in large quantities, its aim is to reduce the amount or quantity of money available to commercial banks for lending, hence mop up the quantity of money in circulation.

Also, if the federal reserve buys government securities, its aim is to make more money available in large quantities to commercial banks and other institutions, hence have more cash to lend people.

The economic effect that central bank are trying to effect by the process of buying back large amounts of treasury security is bring reduction to amount of money available for lending.

Treasury notes as well as bonds are securities that brings about payment of fixed rate of interest which is usually done every six months till the  security reach a stage of maturity.

The central bank do buy large amounts of treasury security so that the money that can be available for lending can be reduced.

Therefore, this process are put in place to balance the economy.

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X circle company purchased a computer system black box, inc. With a list price of $100,000 plus 5% sales tax. The cost to deliver and install the computer was $10,000. The debit to equipment equals.

Answers

The debit to the equipment account should equal $115,000 for X Circle Company, which recently purchased a computer system black box.

What is the recognized cost of the equipment?

The costs that should be recognized for the purchase of new equipment (or asset) include all the costs that will bring the asset into use.

These costs include the purchase cost, delivery, and installation costs.

Data and Calculations:

Computer system black box = $100,000

5% sales tax = $5,000 ($100,000 x 5%)

Delivery and Installation costs = $10,000

Total cost of computer = $115,000 ($100,000 + $5,000 + $10,000)

Thus, the debit to the equipment account should equal $115,000.

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what will I need to start a clothing shop​

Answers

You could start a website and go on from there

Answer:

Explanation:

But meanwhile his you are going to start a new clothing business you will not have much finance ( money ) but first u have to advertise to the customers .  get the customers attraction and there satisfaction , because then one customer will spread the whole news about your clothing shop to almost all the customers. which will be beneficial for you .

You will have to advertise on the tv , radio , bill boards ,  newspapers , many other marketing equipments plus u must advertise your business in a way that the customers will be willing to purchase your clothes from your clothing shop.

Then eventually you will gain more profits and will lead to profits so after sometime you can create a a online shopping like a website , because some and many customers will be willing to purchase your clothes through the online platform. which saves the customers time and transportation costs and etc.

By the way the main element is customers because without customers there will be no lead / success to your clothing shop.

Hope this answer helps you :)

Have a great day.

Mark brainliest :)

_____ is the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes.

Answers

The amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes is: Profit.

Profit can be defined as the amount of money earned after deducting all expenses.

A business or organization objective is to generate profit, therefore any amount a company earned from the sales of goods and service after deducting all expenses all after deducting all the production cost is called profit.

In another word profit is the revenue generated after paying out all costs such as:

Interest costsTaxesLabor costsMaterial costs  etc

Inconclusion the amount of money remaining from a firm's sales revenue after it deducts production costs, interest costs, and taxes is: Profit.

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If you do not complete high school, you are typically paid more than those who pursue post-secondary education

T or F

Answers

False. Why would someone pay someone else more if they didn't even finish school?

hope it helps!

Answer:

false  

explanation: Post-secondary education refers to an education that goes beyond high school.

The chart shows a sample paycheck stub.

A 2-column table has 6 rows. The first column has entries Salary, Federal income tax, social security tax, medicare tax, state income tax, and net pay. The second column has entries 1106.45, 122.67, 68.60, 16.04, 10.33, and 888.81.

The chart shows that federal and state taxes are

added to employee pay.
withheld from employee pay.
refunded in employee pay.
filed through employee pay.

Answers

Answer:

withheld from employee pay.

Explanation:

The term withheld means that the employer deducts the taxes from the employee's pay when processing the payroll. By withholding, the money meant for taxes will not get to the employees' accounts.

The employee's gross pay is $1,106. 45. the next pay is $888.41. the employer must have made some deductions that have reduced the net pay to $888.41. These deductions are the tax amounts that have been withheld by the employer.

The product of 59,736 and 600 is
A) 29,868,000
B) 34,761,600
C) 35,625,600
D) 35,841,600​

Answers

Answer:

D) 35,841,600

Explanation:

I Hope That's Correct ✓ :)

The ______is a financial statement detailing a firm's assets, liabilities, and owners' equity.
A. balance sheet
B. statement of cash flows
C. manufacturing statement
D. income statement

Answers

I had this question before, the answer I got correct is D

The income statement is a financial statement detailing a firm's assets, liabilities, and owner's equity. Thus, option 'D' is the correct option.

What is an income statement?

One of a company's financial accounts, an income statement or profit and loss account, lists the company's revenues and costs for a specific time period. It describes the process through which revenues are converted into net income or net profit.

A period of time is represented by an income statement (as does the cash flow statement). The balance sheet, on the other hand, only depicts one point in time. There are two ways to create an income statement. The Single Step Income Statement calculates the net income by adding up all receipts and deducting all costs.

In order to get at the net income, the Multi-Step income statement makes a number of calculations, beginning with the gross profit and moving on to operational expenditure estimation. then, after taking the gross profit into account, you get income from operations.

Therefore, option 'D' (income statement) is the correct option.

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Which of the following is a technological trend affecting consumer behavior?
O A. Using mobile devices
B. Having reference groups
O C. Meeting affiliation needs
O D. Evaluating purchases

Answers

Answer:using mobile devices

Explanation:

Which of the following roles is the active head of the company?
A. COO
B.CEO
C.CFO
D. President

Answers

The answer to this is ceo

A chief executive officer (CEO), also referred to as a central executive officer (CEO), chief administrator officer (CAO), or simply chief executive (CE).

Who is CEO ?

One of several corporate executives tasked with managing an organisation, particularly an independent legal entity like a company or nonprofit institution.

CEOs work for a variety of companies, including public and private businesses, nonprofits, and even certain governmental agencies (notably state-owned enterprises).

The CEO of a corporation or firm often answers to the board of directors and is responsible for increasing the value of the company, which may involve increasing share price, market share, revenues, or another factor.

CEOs in the government and nonprofit sectors often strive to accomplish goals connected to the organization's mission,normally made available by law. The chief executive officer (CEO) is typically designated as the organization's principal manager and the highest-ranking member of the C-suite.

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Describe the major components of business conduction plan.

Helppp AHHHH

Answers

Answer:

Heya there!

Here's ya answer.

Executive summary Business description and structure Market research and strategiesManagement and personnel Financial documents Founder (team) and business leadershipCo-workers and business coordination

Explanation:

Write a positive or negative integer that describes the situation. Economics: A budget deficit of 29 billion dollars. The integer that describes the situation is billion.

Answers

The integer that describes the situation of a budget deficit of 29 billion dollars is a negative integer.

What type of integer represents a budget deficit of 29 billion dollars?

In economics, a budget deficit occurs when a government's spending exceeds its revenue. A deficit represents a negative financial situation where expenses surpass income. In this case, the budget deficit is specified as 29 billion dollars.

Since the deficit represents a shortfall or a negative balance, it is represented by a negative integer. Therefore, a negative integer accurately describes the situation of a budget deficit of 29 billion dollars.

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If supply increases and demand stays the same, there will be a

A) higher equilibrium price and quantity

B)lower equilibrium price and higher quantity

C) lower equilibrium price and quantity

D) higher equilibrium price and lower quantity

Answers

Answer:

B) lower price increase quantit

Explanation:

One advantage of a sole proprietorship is:

a-owner keeps all the profits.

b-unlimited liability.

c-a difficult creation process.

d-limited sources of funds.

Answers

Answer:

option a

Explanation:

owner keeps all the profits

what is one of the effects that the internet has had on bussiness?

Answers

The advent of the Internet has made the presence of businesses global. ... The communication between customers and businesses increases customer satisfaction and enables businesses to get connected to the customers. The accessibility enables businesses to further expand their service or product, which increases profit.

Ethan is a project manager who is responsible for overseeing overall budget and schedule. which tool is he is most likely to use to help him manage the schedule?

Answers

Ethan is a project manager who is responsible for overseeing the overall budget and schedule. Gantt chart is the tool he  is most likely to use to help him manage the schedule

What is the budget?

One financial lesson that cannot be overstated is the need of creating a budget. Following a budget is the only solution if you and your family want financial security. It aids you in maintaining your focus.

With the help of a budget, you are compelled to set objectives

save money monitor your expenditures realize your aspirations.

Okay, so it could hurt to learn that your budget does not allow you the brand-new video game or the exquisite cashmere sweater you saw in the store window. However, it will be a lot simpler to make a U-turn and leave the store without purchasing anything if you remind yourself that you are setting money aside for a new home.

It enables you to avoid spending money that you don't have.

Credit cards are solely to blame for consumers spending far too much money that they do not have. The average family's credit card debt in 2021 was $5,525 in reality. It helps to create a more content retirement.

By adopting a budget, you can accomplish that. It's important to factor donations for investing into your budget. If you set aside a portion of your income each month for your IRA, 401(k), or other retirement accounts, you will eventually be able to build up a decent nest. In the long run, it will be profitable even if you have to make some compromises today.

Thus, budgeting is a way of life.

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Sarah receives a semi-monthly salary of $933.20 and works a regular workweek of 40 hours. A. What is Sarah's hourly rate of pay? 5 marks b. If Sarah's gross earnings in one pay period were $1090.19, for how many hours of overtime was she paid at time and one-half regular pay

Answers

Answer:

$10.7677

9.72 hours

Explanation:

Given the following :

Semi-monthly salary = $933.20

Work hours per week = 40 hours

Hourly rate of pay =?

Monthly salary = 2 × $933.20 = $1866.40

Yearly pay = $1866.40 × 12 = $22396.8

Therefore, weekly pay ;

$22,396.80 / 52 = $430.7077

However, Sarah only works for 40 hours per week

Therefore, weekly pay equals;

$430.7077 / 40 = $10.7677

B) if gross pay = $1090.19

Therefore, amount of overtime paid equals:

$1090.19 - $933.20 = $156.99

If overtime pay is one-half regular pay, that is;

1.5 × $10.7677 = $16.152

Therefore, overtime hours equals

Total overtime paid / overtime pay rate

$156.99 / $ 16.152 = 9.719

9.72 hours

The best use of RFQ is for customer to compare the quotes of the product that they requested from different vendors. A. True B. False

Answers

The best use of RFQ is for customer to compare the quotes of the product that they requested from different vendors. The statement is true.

The Request for Quote (RFQ) process is a common procurement method used by organizations to gather information and compare pricing for products or services from potential vendors. The RFQ enables a customer to solicit competitive bids from various vendors to ensure that they are getting the best value for their money. The customer can compare the quotes provided by the vendors and choose the one that best meets their requirements and budget.

Request for Quote (RFQ) is a procurement process used by organizations to obtain competitive bids from vendors for products or services. The RFQ specifies the requirements, terms, and conditions of the purchase, and vendors respond with quotes that the customer can compare to select the best offer.

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Which two types of information can be found on a profit and loss statement?

Answers

The two types of information can be found on a profit and loss statement are:

C) revenuesD) Expenses

What is profit and loss statement?

A profit and loss statement, also known as an income statement, is a financial report that shows a company's revenue, expenses, and net income over a specific period of time, such as a month, quarter, or year. The purpose of the statement is to provide insight into the financial performance of the business and to assess its profitability.

The profit and loss statement typically includes  theRevenue which is the is the total amount of money earned by the business from sales or services provided during the specified period.

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check the missing options:

A) assets

B) liabilities

C) revenues

D) Expenses

The independently owned and operated cafeteria inside the local hospital uses inputs such as
money, groceries, and labor to transform food into hot meals. In this scenario, which of the following
is a transformation process?

Answers

Answer: The transformation process in this scenario involves using inputs such as money, food, and labor to turn the food into hot meals.

Explanation: In this scenario, an independent cafeteria operated out of a local hospital takes money, food, and labor and turns them into hot meals. This transformational process is an important part of cafeteria operations as it creates meals that can be served to hospital staff, patients, and visitors. By taking these inputs and turning them into an end product (hot meals), the cafeteria demonstrates the basic principles of the transformation process. Therefore, in this scenario, the transformation process refers to the process of converting the inputs (money, food, and labor) into a finished product (hot food).

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Individuals in different segments should have blank ______ within the segment and blank ______ across the segments. multiple choice question. differences; similarities similarities; familiarity targets; positioning similarities; differences

Answers

Answer: Similarities; differences

Explanation:

Which types of investments are securities? Debt or equity?

Answers

Answer:

Securities are commonly thought of as tradable financial assets Equity securities common stocks Fixed income investments, including debt securities like bonds notes and money market instruments. Some fixed income investments such as certificates of deposit CDs may not be securities at all

Explanation:

Telling customers that they only have until midnight to get sale prices is an appeal to

A. ethos.

B. logos.

C. pathos.

D. kairos.

Answers

Answer:

D. kairos.

Explanation:

Telling customers that they only have until midnight to get sale prices is an appeal to kairos.

Answer:

It's d

Explanation:

you need a 35-year, fixed-rate mortgage to buy a new home for $310,000. your mortgage bank will lend you the money at an apr of 6.05 percent for this 420-month loan. however, you can only afford monthly payments of $1,500, so you offer to pay off any remaining loan balance at the end of the loan in the form of a single balloon payment. how large will this balloon payment have to be for you to keep your monthly payments at $1,500? (do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Answers

The balloon payment at the end of the loan would have to be $72,032.57 for the borrower to keep the monthly payments at $1,500.

To calculate the balloon payment, we first need to calculate the monthly payment on the loan using the given loan amount, loan term, and APR:

Loan amount = $310,000

Loan term = 35 years (420 months)

APR = 6.05%

Monthly interest rate = APR ÷ 12 = 0.0605 ÷ 12 = 0.005042

Monthly payment = P × (r × (1 + r)ⁿ) ÷ ((1 + r)ⁿ - 1)

where P = loan amount, r = monthly interest rate, and n = number of months

Substituting the given values, we get:

Monthly payment = 310000 × (0.005042 × (1 + 0.005042)⁴²⁰) / ((1 + 0.005042)⁴²⁰ - 1) = $1,778.09

This monthly payment is higher than the maximum monthly payment the borrower can afford, which is $1,500. Therefore, the borrower proposes to pay off the remaining loan balance in the form of a single balloon payment at the end of the loan.

Let B be the balloon payment at the end of the loan. Then the loan balance at the end of the 420th month would be:

Loan balance = P × (1 + r)ⁿ - (Monthly payment × (((1 + r)ⁿ - 1) ÷ r)) + B × (1 + r)ⁿ

where P = loan amount, r = monthly interest rate, n = number of months, Monthly payment = $1,500, and B = balloon payment

Substituting the given values, we get:

B = 310000 × (1 + 0.005042)⁴²⁰ - (1500 × (((1 + 0.005042)⁴²⁰ - 1) ÷ 0.005042)) + B × (1 + 0.005042)⁴²⁰

Solving for B, we get:

B = $72,032.57

Therefore, the balloon payment at the end of the loan would have to be $72,032.57 for the borrower to keep the monthly payments at $1,500.

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