Determine the maturity risk premium for the thirty-yr bond

Reference no: EM13284173

A 30 year US Treasury bond has a 4.0 % interest rate. In contrast, a 10-year Treasury bond has an interest rate of 3.7 %. If inflation is expected to average 1.5 % points over both the next ten yrs and thirty years, determine the maturity risk premium for the thirty-yr bond over the 10-year bond.

Reference no: EM13284173

Questions Cloud

Calculate roe , eva, cash flows and provide a comparison : Calculate ROE , EVA, Cash Flows and provide a comparison

Find and sketch the spectrum of the information signal : (a) Find and sketch the spectrum of the information signal. What is the bandwidth of the information signal (choose an appropriatedefinition for the bandwidth in each case) (b) Write a time-domain expression for the modulated carrier.Include all kn..

What would be the default risk premium : You are considering an investment in a one-year gov't debt security with a yield of 5 % or a highly liquid corporate debt security with a yield of 6.5%. The expected inflation rate for the next year is expected to be 2.5%.

How many turns of wire are required to produce a b-field : How many turns of wire are required to produce a B-field whosemagnitude is greater than or equal to 10-3[T] inside anair-wound solenoid that is 2 [cm] long and carries a current of 100[mA].

Determine the maturity risk premium for the thirty-yr bond : If inflation is expected to average 1.5 % points over both the next ten yrs and thirty years, determine the maturity risk premium for the thirty-yr bond over the 10-year bond.

At what frequency will the aliased signal appear : If a lowpass filter with a DC gain of 1 and 3 poles, all at 3KHzis used as an antialiasing filter, at what frequency will the aliased signal ( 5KHz) appear abd wgat will be the amplitude of the aliased signal.

What is the resultant amplitude of the two waves : Two sinusoidal waves, identical except for phase, travel in the same direction along a string, what is the resultant amplitude of the two waves

What is the snr of the digitized signal if the adc is ideal : A 12-bit ADC with a Vref of 5V is used to digitize small signals with a quiescent value of 2.5V and a variation around 2.5 of +/- 100mV. What is the SNR of the digitized signal if the ADC is ideal

What is the dielectric constant of the dielectric : A parallel plate capacitor has a capacitance of 4.5 µF when filled with a dielectric. What is the dielectric constant of the dielectric

User Account

All Pages