subject
Business, 07.11.2019 01:31 wildfire771003

Inflation is expected to increase steadily over the next 10 years, there is a positive maturity risk premium on both treasury and corporate bonds, and the real risk-free rate of interest is expected to remain constant. which of the following statements is correct? a. the yield on 10-year treasury securities must exceed the yield on 7 year treasury securities. b. the yield on any corporate bond must exceed the yields on all treasury bonds. c. the yield on 7-year corporate bonds must exceed the yield on 10-year treasury bonds. d. the stated conditions cannot all be true -- they are internally inconsistent. e. the treasury yield curve under the stated conditions would be humped rather than have a consistent positive or negative slope.

ansver
Answers: 1

Another question on Business

question
Business, 22.06.2019 20:40
David consumes two things: gasoline (g) and bread (b). david's utility function is u(g, b) = 10g^0.25 b^0.75. use the lagrange technique to solve for david's optimal choices of gasoline and bread as a function of the price of gasoline, p_g, the price of bread, p_b, and his income m. with recent decrease in the price of gasoline (maybe due to external shock such as shale gas production) does david increase his consumption of gasoline? for david, how does partial differential g/partial differential p_g depend on his income m? that is, how does david's change in gasoline consumption due to an increase in the price of gasoline depend on his income level? to answer these questions, find the cross-partial derivative, |partial differential^2 g/partial differential m partial differential p_g.
Answers: 1
question
Business, 23.06.2019 00:00
How much is a 2019 tesla? ? exact price trying to buy for my 6 year old sister
Answers: 2
question
Business, 23.06.2019 02:40
The mayflower, a seafood restaurant, had the following liabilities by the end of 2015: accounts payable $60,000 wages payable $100,000 unearned revenue $125,000 (60% will be earned in 2016) notes payable $140,000 ($45,000 payable in 2016) what is the amount that the mayflower should report as total current liability on its balance sheet as of december 31, 2015?
Answers: 2
question
Business, 23.06.2019 07:50
Tubby toys estimates that its new line of rubber ducks will generate sales of $7.60 million, operating costs of $4.60 million, and a depreciation expense of $1.60 million. if the tax rate is 35%, what is the firm’s operating cash flow? (enter your answer in millions rounded to 2 decimal places.)
Answers: 1
You know the right answer?
Inflation is expected to increase steadily over the next 10 years, there is a positive maturity risk...
Questions
question
English, 14.01.2021 23:10
question
Chemistry, 14.01.2021 23:10
question
Mathematics, 14.01.2021 23:10
question
Mathematics, 14.01.2021 23:20
question
Mathematics, 14.01.2021 23:20
question
Mathematics, 14.01.2021 23:20
Questions on the website: 13722359