What is the yield on a treasury note

Assignment Help Accounting Basics
Reference no: EM131832687

Question - The real risk-free rate is 3%. Inflation is expected to be 3.45% this year, 4.75% next year, and then 3.45% thereafter. The maturity risk premium is estimated to be 0.05(t - 1)%, where t = number of years to maturity. What is the yield on a 7-year Treasury note? Round your answer to two decimal places.

Reference no: EM131832687

Questions Cloud

What is total company expense on profit and loss statement : Payroll tax withheld is $542.00. Company payroll tax is $321.00. What is the total company expense on the Profit and Loss Statement
How many years will it take for india to reach italys gdp : Using the rule of 70, how many years will it take for India to reach Italy's current level of GDP per capita, about $28,000 per year?
Make the stockholders equity section of the balance sheet : Instructions: Prepare the stockholders' equity section of the balance sheet at December 31, 2017.
Sustainable growth rate analysis : Use a sustainable growth rate analysis in the following table to determine the source Sales $20,000 NI $1,000 Total Assets $10,000 Equity
What is the yield on a treasury note : The real risk-free rate is 3%. Inflation is expected to be 3.45% this year, 4.75% next year, What is the yield on a 7-year Treasury note
Which one of the three factor of production you think matter : Which one of the three factors of production do you think matters most to a leader of a resource-rich country? Why?
Write a program that asks for a password : Write a program that asks for a password, then asks again to confirm it. If the passwords don't match or the rules are not fulfilled, prompt again.
Determine the price of the bonds at january : Determine the price of the bonds at January 1, 2018, and prepare the journal entry to record their issuance by Instaform
How many of these ten countries have a gdp per person : How many of these 10 countries have a GDP per person that is at least half of the U.S. level? How many are less than 10% of the U.S. level?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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