Determinants of interest rate for individual securities

Assignment Help Business Management
Reference no: EM131702557

Determinants of Interest Rate for Individual Securities

The Wall Street Journal reports that the rate on 3-year Treasury securities is 8.40 percent, and the 6-year Treasury rate is 8.70 percent. From discussions with your broker, you have determined that expected inflation premium is 3.55 percent next year, 3.05 percent in Year 2, and 3.90 percent in Year 3 and beyond. Further, you expect that real interest rates will be 4.10 percent annually for the foreseeable future. What is the maturity risk premium on the 6-year Treasury security?

Reference no: EM131702557

Questions Cloud

How many times does the committee meet on an annual basis : How many times does the committee meet on an annual basis? What authority does the committee have in carrying out its responsibilities
Propose your methods for evidence collection : Propose your methods for evidence collection. Next, predict the main evidence that you would expect to find regarding the investigation of the death of the boy.
Collective bargaining rights for public sector employees : Why were politicians in 2011 so interested in trying to repeal collective bargaining rights for public sector employees?
Discuss the understanding of impression management : How does the tobacco industry example fit into our understanding of impression management
Determinants of interest rate for individual securities : The Wall Street Journal reports that the rate on 3-year Treasury securities is 8.40 percent, and the 6-year Treasury rate is 8.70 percent.
Determine the depreciation expense for each year : Determine the Depreciation Expense for each year of the life of the machine using declining balance depreciation
Describe the california whistleblower law : The court here was faced with three choices: permit the action to proceed under the California Whistleblower Law.
What is stalking : Name two different types of "Crimes Against Person" and explain what they consist of? What is "Stalking" and what are some of the elements ?
Pros and cons of regional integration initiatives : Discuss the pros and cons of regional integration initiatives. why do you think it is argued that many firms are better prepared to compete at regional.

Reviews

Write a Review

Business Management Questions & Answers

  Effort to attain these long term objectives

Define three long-term (more than one year out) objectives for your vocation. Define three strategies that you can use in the effort to attain these long term objectives

  Legal aspects of health care administration

A survey of primary-care doctors conducted in 2009 finds that 42% of the 627 respondents believed the patients in their own practice were getting too much care. Just 6% of doctors believed their patients were getting too little care. (The rest tho..

  Explain high performance organizations

How can increased performance be initiated and what are the benefits of increased performance to an organization?

  Evaluation of efficiency and efficacyyou have a team of

evaluation of efficiency and efficacyyou have a team of managers of a customer call center for timeshare vacations.1.

  Keynes income-expenditure model

In Keynes' Income-Expenditure Model, all points along the AS curve have something in common. What do they have in common?

  Adjust the customer tracking system''s economic feasibility

Adjust the customer tracking system's economic feasibility analysis to reflect the modifications mentioned in this case problem. Utilized a discount rate of 10 percent. Afterward the changes are made, what are the new overall NPV, ROI and BEP?

  Problem regarding the entity relationship diagram

Pick a topic of your interest and create a sample ERD (Entity Relationship Diagram) with documentation.

  Starbucks and others on the future of free

Refer to the Real world case on Starbucks and Others on the future of free, Public WI-Fi. New startups are offering in exchange for serving advertising while browsing the web. What do you think about this business model?

  Explain marketing techniques by traditional businesses

charities are using marketing techniques very similar to the ones used by traditional businesses and are there any issues related to this practice that you would like to raise

  Company leaders realize that customer advocates

Company leaders realize that customer advocates are extremely powerful marketing channels since people trust and listen to what their peers say. Use the Fan & Gordon paper and the Johnson and Johnson case to elaborate

  Real reasons about immigration

Can someone please help me to write an Essay of  4-5 pages about "Immigration in EEUU" and explain how most of the "experts" in immigration cannot explain the economics concepts behind the phenomenon of immigration. 1. Explain why are the real rea..

  Explain opportunity for doing marketing research

The Internet provides a wonderful opportunity for doing marketing research and learning about various consumer markets. You are to prepare a report on the size, location, purchasing power, and market potential for the 3 largest minority target mar..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd