Assume that the real risk-free rate is 1% and that the maturity risk premium is zero. if a 1-year treasury bond yield is 7% and a 2-year treasury bond yields 8%, what is the 1-year interest rate that is expected for year 2? calculate this yield using a geometric average. do not round intermediate calculations. round your answer to two decimal places.

Aprice ceiling is “binding” if the price ceiling is set below the equilibrium price. suppose that the equilibrium price is $5. if a price ceiling is set at $6, this will not affect the market in any way since $5 remains a legally allowable price (since $5 < $6). a price ceiling of $6 is called a “non-binding” price ceiling. on the other hand, if the price ceiling is set at $4, the price ceiling is “binding” because the natural equilibrium price is $5 but that is no longer allowed. what happens when there is a binding price ceiling? at a price below the equilibrium price, quantity demanded exceeds quantity supplied. there is a shortage. normally, price increases eliminate shortages by increasing quantity supplied and decreasing quantity demanded. in this case, however, price increases are not allowed past the price ceiling. we therefore predict that the observed market price will be right at the price ceiling and there will be a permanent shortage. the observed quantity bought and sold will be dictated by the quantity supplied at the price ceiling. although consumers would like to buy more, there are no more units for sale

One of the benefits of a well designed ergonomic work environment is low operating costs is true or false

Abond purchased for $950 was sold for $980 after one year. the interest received during the year is $25. the bond's yield is: