What is the difference in the annual inflation rates

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1. One-year T-bill rates are 3% currently. If interest rates are expected to go up after year 4 by 3% every year and after, what should be the required interest rate on a 10-year bond issued today?

2. Suppose the current exchange rate for the Polish zloty is zl 2.80. The expected exchange rate in three years is zl 2.87. What is the difference in the annual inflation rates for the United States and Poland over this period? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

3. Precision Manufacturing had the following operating results for 2014: sales = $38,900; cost of goods sold = $24,600; depreciation expense = $1,700; interest expense = $1,400; dividends paid = $1,000. At the beginning of the year, net fixed assets were $14,300, current assets were $8,700, and current liabilities were $6,600. At the end of the year, net fixed assets were $13,600, current assets were $9,200, and current liabilities were $7,400. The tax rate for 2014 was 40 percent. What is the cash flow from assets for 2014?

The Choices are below:

$8,520

$8,820

$9,120

$9,492

$10,820

Reference no: EM131825982

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