The current one-year t-bill rate is .49 percent and the expected one-year rate 12 months from now is 1.00 percent. according to the unbiased expectations theory, what should be the current rate for a two-year treasury security?

hello from mrbilldoesmath!

answer:

(7 x + 6 y) (49 x^2 - 42 x y + 36 y^2)

discussion:

the trick is to recognize that 343 = 7^3 and 216 = 6^3 and, in general,

a^3 + b^3 =   (a + b) (a^2 - a b + b^2).

in our case

343x^3+216y^3   =   (7x)^3 + (6y)^3

so take a = 7x and b = 6y in the above equation to get the answer.

you,

mrb

the answer to question 1 is -8, 28.

step-by-step explanation:

a) at most means it can cost $12 or less

so the inequality sign would be ≤

you would then need to multiply the number of toppings by the 0.35 for each one and add it to the cost of the cheese pizza.

the equation would be 9.99 + 0.35x ≤ 12

b) using the above equation:

9.99 + 0.35x ≤ 12

subtract 9.99 from each side:

0.35x ≤2.01

divide both sides by 0.35:

x ≤ 2.01 / 0.35

x ≤5.74

at most you could have 5 toppings.

the 5 topping pizza would cost: 0.35 x 5 = 1.75 + 9.99 = $11.74