The one-year interest rate is 4%. The interest rate for a two-year security is 6%. According to the
unbiased expectations theory, the one-year interest rate one year from now must be equal to
A) 8.04%. B) 10.00%. C) 5.00%. D) 8.00%.
A
You might also like to view...
On January 2, 2010, McGowan Corporation issued 20-year bonds payable with a face value of $300,000 and a face interest rate of 8 percent. The bonds were issued to yield a market interest rate of 9 percent. Interest is payable annually on January 2 . In calculating the present value of the bond issue of January 2, 2010, the
a. 9 percent rate will be used to calculate the present value of the face amount and the 8 percent rate will be used to calculate the present value of the periodic interest payments. b. 9 percent rate will be used to calculate the present value of the face amount and the present value of the periodic interest payments. c. 8 percent rate will be used to calculate the present value of the face amount and the present value of the periodic interest payments. d. 8 percent rate will be used to calculate the present value of the face amount and the 9 percent rate will be used to calculate the present value of the periodic interest payments.
Budgets
a. should contain both revenues and expenses. b. contain as much information as possible. c. are presented in dollars only; nondollar data should be excluded. d. are synonymous with managing an organization.
The vital importance of negotiable instruments and electronic transfers as methods of payment cannot be overstated
a. True b. False Indicate whether the statement is true or false
______ leaders are uncaring or unkind, ignoring or downplaying the needs, wants, and wishes of followers.
A. Callous B. Rigid C. Abusive D. Tyrannical