What is the one year rate five years from now

Assignment Help Finance Basics
Reference no: EM13888872

Suppose the spot rates are: 1-Year Rate: 4%, 2-Year Rate: 5.5%, 3-Year Rate 6%, 4-Year Rate: 6.5%, 5-Year Rate: 7%, 6-Year Rate: 9% and 7-Year Rate: 10.5%  What is the one year  rate five years from now?

a. 19.57%
b. 18.62%
c. 15.80%
d. 14.65%
e. 12.67%

Reference no: EM13888872

Questions Cloud

Sequences of blank characters : You have been asked to test a method called 'catWhiteSpace' in a 'Paragraph' object that, within the paragraph, replaces sequences of blank characters with a single blank character.
What is the arbitrage profit as a percentage of par : A 5-year zero coupon bond is stated to yield 10% continuously compounded return for the entire period (holding period return over 5 years) in market A. The same bond is quoted 2% per annum with annual compounding in Market B. Where is the bond cheape..
Program to be completely free : Explain why it is not necessary for a program to be completely free of defects before it is delivered to its customers.
Forecasting system being used by yankee : The Yankee Fork and Hoe Company is a leading producer of garden tools ranging from wheelbarrows, mortar pans, and hand trucks to shovels, rakes, and trowels.
What is the one year rate five years from now : Suppose the spot rates are: 1-Year Rate: 4%, 2-Year Rate: 5.5%, 3-Year Rate 6%, 4-Year Rate: 6.5%, 5-Year Rate: 7%, 6-Year Rate: 9% and 7-Year Rate: 10.5%  What is the one year  rate five years from now?
Identify the issues that dave must consider in deciding : Identify the issues that Dave must consider in deciding on the price of each level of service of his car wash. Also discuss what issues he should consider in deciding on what levels of service to provide.
Case study: too far ahead of the it curve : How did your opinions about what should be done differ before you read the commentaries, and after you read them?
Strategic options for legacy system evolution : What are the strategic options for legacy system evolution? When would you normally replace all or part of a system rather than continue maintenance of the software?
Explain the cost of capital and how it is determined : Explain the cost of capital and how it is determined

Reviews

Write a Review

Finance Basics Questions & Answers

  Investigate benefits-disadvantages of expanding

You are a business owner firm that manufactures a specialized product in the United States. While developing a 5-year strategic growth plan, you have decided to investigate the benefits and disadvantages of expanding internationally. Research the ..

  What can be done to ensure its effectiveness

What are some reasons why on-the-job training can prove ineffective? What can be done to ensure its effectiveness?

  What were qualcomm total accounts receivable

Find online the annual 10-K report for Peet’s Coffee and Tea (PEET) for 2008. Answer the following questions from their balance sheet

  Which would be the three most important ratios of the compan

1. If you were an investor thinking of buying either corporate bonds or preferred stock, which would be the three most important ratios of the company that you would study? Why did you choose those? 2. How does The Home Depot's 2012 debt/equity ratio..

  What is meant by capital structure

What is meant by capital structure? What metrics can be used to assess improvement or deterioration in the capital structure?

  In order for a derivatives market to function most

in order for a derivatives market to function most efficiently two types of economic agents are needed hedgers and

  Web links provided in the webliography on the basis of the

assume that microsofts stock has an expected rate of return of 7 percent.1. determine the market risk premium point

  Analyze markets and add graphs

Case Analysis about German disease in financial aspect 3,5-4 pages in 14 front It is a Financial Market class. You need to analyze markets and add some graphs.

  Why you think that they didnot follow this principle

If so, what are/were they? Please share with the class what they are/were and why you think that they didn't follow this principle.

  Maple corporations stockholders equity at june 30 2000

maple corporations stockholders equity at june 30 2000 consisted of the followingpreferred stock 10 50 par value

  Determining the break even of hospital

MIllbridge Memorial Hospital provides comprehensive physical exams. The charge per exam is $100, while the variable cost per exam is $65.

  Calculate the expected return

The following table shows the one-year return distribution of Startup, Inc. Calculate The expected return.The standard deviation of the return.

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