What should be current rate for two-year treasury security

Assignment Help Financial Management
Reference no: EM131997988

1. How much money would you have to deposit today in order to have $2,000 in five years if the discount rate is 9 percent per year? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)

please show work

2. The current one-year T-bill rate is .30 percent and the expected one-year rate 12 months from now is 1.48 percent. According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16))

please show work

Reference no: EM131997988

Questions Cloud

Negotiate directly with the board rather than shareholders : The board be able to force potential acquirors to negotiate directly with the board rather than the shareholders?
Does covered interest rate parity prevail : Does covered interest rate parity prevail? Does this mean that uncovered interest rate parity also holds? Explain.
What will the price–earnings ratio be : What will the price–earnings ratio be? If there are no synergy gains, what will the share price of A be after the merger?
What is the fair present value of stock : If the required rate of return on the preferred stock is 7 percent, what is the fair present value of the stock?
What should be current rate for two-year treasury security : According to the unbiased expectations theory, what should be the current rate for a two-year Treasury security?
Call and put option- buyer of the call option point of view : For all call and put options-The market price for Alibaba Group Holding Limited. (Ticker: BABA) was $198.74 when Mark bought a call option today.
What is this firm WACC : The book value of its debt is £7 million. If its cost of equity is 10.25%. If the corporate tax rate is 30%, what is this firm's WACC?
Received for owning the stock during the year : hat is the dollar amount of dividends that he received for owning the stock during the year?
Despite the stock market recent climb to record levels : Despite the stock market's recent climb to record levels, a cloud of uncertainty is likely to overhang U.S. economy and financial markets through 2018-19 period

Reviews

Write a Review

Financial Management Questions & Answers

  Mega stock is expected to grow

Mega stock is expected to grow at 11% in year 1 and year 2, 10% in year 3, 8 % in year 4 and then grow at a constant rate of 4% in the years that follow. The required rate of return (Rs) equals 7%. The company will pay a Dividend at the end of year 1..

  What will the pool factor be

Assume that five years have passed since the date in (a). What will the pool factor be? If market interest rates are 12 percent, what price can Green obtain now?

  What is the current bond price

Lycan, Inc., has 6 percent coupon bonds on the market that have 7 years left to maturity. The bonds make annual payments. Required: If the YTM on these bonds is 8 percent, what is the current bond price?

  Net present value and present value index of investment

Determine the net present value and present value index of investment, assuming that Fanning uses straight-line depreciation for financial income tax reporting.

  What is block ownership-how does affect corporate governance

Suppose you decide (as decide (as did Steve jobs and Mark Zuckerberg) to start a company. Your product is a software platform that integrates a wide range of media devices, including laptop computers, desktop computers, digital video records, and cel..

  Slower future growth can be expected

Many companies grow very fast at first, but slower future growth can be expected. Such companies are called:

  Risk-averse but can invest in only one of three securities

Suppose your client is risk-averse but can invest in only one of the three securities, A, B, or C, in an uncertain world characterized as follows. Next year the economy will be in an expansion, normal, or recession state with probabilities 0.43, 0.31..

  What is projected net income

Prepare a pro forma income statement assuming a tax rate of 34 percent. What is the projected net income?

  What real amount must you deposit each year to achieve goal

You want to have $4 million in real dollars in an account when you retire in 20 years. The nominal return on your investment is 14 percent and the inflation rate is 3.8 percent. What real amount must you deposit each year to achieve your goal?

  Would involve writing employee schedules

Suppose you manage an upscale restaurant in New York City. would involve writing employee schedules

  Which the two accounts have the same force of interest

Account accumulates value using simple interest at an annual rate of 10%. Find the time at which the two accounts have the same force of interest.

  Term structure of interest rates and the yield curve

Calculating Annuities You are planning to save for retirement over the next 30 years. To do this, you will invest $750 per month in a stock account and $250 per month in a bond account. Treasury Bonds Is it true that a U.S. Treasury security is risk-..

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