What is yield on seven-year treasury note

Assignment Help Financial Management
Reference no: EM131318907

The real risk-free rate is 2.85%. Inflation is expected to be 2.05% this year, 3.65% next year, and 3.25% 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? Do not round your intermediate calculations. Round your answer to two decimal places.

Reference no: EM131318907

Questions Cloud

Final knowledge gained and further development activity : In this final paper, you will draw upon knowledge gained in this capstone class and also other classes you have taken in your degree program or elsewhere. You will select two of the following concepts that represent key concepts related to the key ..
Makes semiannual coupon payments : A government bond with a coupon rate of 8% makes semiannual coupon payments on January 14 and July 14 of each year. The Wall Street Journal reports the asked price for the bond on January 29 at 100:2. What is the invoice price of the bond? The coupon..
Identify the synergy between personality development : Identify the synergy between personality development and student learning behavior. Differentiate between two theoretical approaches, and discuss how each one supports effective learning strategies, increases motivation for learning, and enhances tec..
Bonds outstanding that pay interest semiannually : New Markets has bonds outstanding that pay interest semiannually, mature in 14.5 years, and have a 4.5 percent coupon. The current price is quoted at 97.6 (97.6% of the par value). What is the yield to maturity?
What is yield on seven-year treasury note : The real risk-free rate is 2.85%. Inflation is expected to be 2.05% this year, 3.65% next year, and 3.25% 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 Trea..
Cause the manager to receive better grade : If the CEO of a large firm were filling out a performance report on a division manager, which of the following situations would be likely to cause the manager to receive a better grade?
Analyze background and financial data for the ruc facility : Refer to the document Background and Financial Data for Investment in the Rural Urgent Care Center in this week's Learning Resources. Analyze the background and financial data for the RUC facility.
Company achieve without having to raise funds externally : Maggie's Muffins, Inc., generated $2,000,000 in sales during 2015, and its year-end total assets were $1,500,000. Also, at year-end 2015, current liabilities were $1,000,000, consisting of $300,000 of notes payable, $500,000 of accounts payable, and ..
Provide a review in discussion of schizophrenia : Please provide a review in discussion of schizophrenia. This is not simply a summary and review paper. Please use scholarly literature to support discussion of the specific areas

Reviews

Write a Review

Financial Management Questions & Answers

  Made two announcements concerning its common stock

Sessler Manufacturers made two announcements concerning its common stock today. First, the company announced that the next annual dividend will be $1.75 a share. Secondly, all dividends after that will decrease by 1.5 percent annually. What is the ma..

  Compute pinchess dol dfl and dcl

Pinches Salt Company has the following income statement for 2010: Compute Pinches's DOL, DFL, and DCL. If sales increase to $5,500,000, what is your forecast of EPS?

  What is the total annual return for this bond

Suppose that an investor is planning to purchase a 9% semi-annual coupon bond selling at par with 10 years to maturity and plans to hold it for 4 years and sell it at an expected yield to maturity of 8.5%. The investor expects that he can reinvest th..

  Gfgb-global financial markets

The questions below are not meant to be indicative of the types of questions I tend to use in an exam.  It is not meant to be comprehensive and cover all material discussed in class.  Please refer to class notes for the material coverage in class...

  Now adjust for unequal lives with equivalent annual cost

Singing Fish Fine Foods has $2,000,000 for capital investments this year and is considering two potential projects for the funds. Project one is updating the deli section of the store for additional food service. The estimated annual after-tax cash f..

  Bond with a face value

A 10-year bond with a face value of $1000 is redeemable at par and earns interest at 8.8% convertible semiannually. If the yield rate is 7% convertible semiannually, find the book value immediately after the payment of the 11^{th} coupon.

  Calculate the total input shares of labor and capital

Calculate the total input shares of labor and capital in each dollar of cloth output:- Cloth is the only product that this country exports.

  Explain how accounts payable affects external funds required

There is an expression that it is best to operate a business using “other people’s money.” Given that other people’s money is reflected in accounts payable, explain how accounts payable affects the external funds required (EFR).

  The firms weighted average cost of capital

Wayco Industrial Supply has a pretax cost of debt of 7.6 percent, a cost of equity of 16.8 percent, and a cost of preferred stock of 9.1 percent. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. There are 25,0..

  With the possible exception of the residual value

From the lessee viewpoint, the riskiness of the cash flows, with the possible exception of the residual value, is about the same as the riskiness of the lessee's _____

  Learn-serve and grow relate to building relationships

How do the principles of learn, serve, and grow relate to building relationships? What does it mean to really learn about someone, really serve them, and then actually grow with them in a business relationship?

  Preparing an income statement-gross margin

Dinah’s Donuts is preparing an income statement. Gross sales equal $270,000. Returns and allowances equal $11,000. Cost of Goods sold equals $150,000. What is Dinah’s gross margin?

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