What is the expected one bond interest rate

Assignment Help Macroeconomics
Reference no: EM132422523

Based on expectation theory, if the interest rate for a 4-year bond is 10% and the interest rate on a 1-year bond right now is 9%, a one year bond a year from now is 9%, and a one year bond two years from now is 11%, what is the expected one year bond interest rate three years from now?

Reference no: EM132422523

Questions Cloud

Did supply-side policy work for the economy : Did supply-side policy work for the economy? Where did Supply-side policy have a lasting impact? When else have we seen supply-side arguments applied?
What are the potential benefits of a police citizens academy : The links gives an overview of the FBI's citizen's academy-classes offered to citizens where they can learn how the FBI investigates crimes and threats.
What packages and deals will be interested in a hotel : Do you need Wi-Fi in your hotel room?How do you want your breakfast served when you spend a night in our hotel? Do you like to have an animal farm in the hotel?
Difference of the geocentric and heliocentric view : Analyze our solar system by breaking down the similarities and difference of the geocentric and heliocentric view.
What is the expected one bond interest rate : A one year bond a year from now is 9%, and a one year bond two years from now is 11%, what is the expected one year bond interest rate three years from now?
Population dynamics and cultural geography : Pick a country geographic region or mega city, and research its natural landforms, climate, environmental resources, population dynamics, and cultural Geography
America running a budget deficit : Question 1: What is your opinion about America running a budget deficit? Should America have a national debt?
Keynesian aggregate expenditures model : What are the assumptions of the Keynesian Aggregate Expenditures model? How are these different from the 'neoclassical' assumptions about an economy?
Factors behind the level of investment in a country : What are the factors behind the level of investment in a country? What is the role of expected demand in investment?

Reviews

Write a Review

Macroeconomics Questions & Answers

  Social diversity and business ethics

Discuss on social diversity and business ethics and how has a more diversified labor force affected the corporate structure and economy?

  Relevant market interest rate

Suppose a Treasury bond will mature in 3 years. If the bond pays a coupon of $100 per year and will make a final par value payment of $3,000 at maturity, what is its price if the relevant market interest rate is 7%?

  Explain relationship in total revenue and average revenue

Define and explain the relationship between total revenue, average revenue, and marginal revenue for a monopolist. What is monopoly profit Should a monopolist produce quantities of product greater than which would maximize profiits

  Tobins and baumols approaches of money demand

What are the differences between Tobins and Baumols approaches of money demand.

  Advantage of facebook

After viewing the film "The Social Network" explain Early mover advantage of Facebook (nationally) and What are some of Facebook's impediments to imitability?

  Describe the given question accordingly pie chart

a. What percentage of the cars sold in 2013 were all-electric vehicles? b. What percentage of the cars sold in 2013 were 4-door sedans? c. What was the most popular vehicle type for 2013 based on sales? d. What was the least popular vehicle type for ..

  Explain how high does the stock price have to rise

Explain how high does the stock price have to rise for the option strategy to be more profitable.

  Demand curve that coca-cola faces

1. Evaluate the statement: The demand Curve that Crest faces is flatter than the Demand Curve that Coca-Cola faces? Why?, or why not.

  Nation top source of carbon dioxide

Coal plants are the nation's top source of carbon dioxide (CO2) emissions. a) For simplicity, assume that the coal market is perfectly competitive and draw a standard upward-sloping supply and downward-sloping demand diagram to represent the equili..

  Is it wrong to use the total income test for elasticity

Is it wrong to use the total income test for elasticity, when there is a direct relationship between price and total revenue the demand is elastic.

  Figuring out the optimal price and quantity

You are the manager of College Computers, a manufacturer of customized computers that meet the specifications required by the local university.

  What is the firm optimal use of input

Suppose an econometrician observed the firm's revenue under various output prices, What is the firm's optimal use of input

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