What is yield on three-year treasury securities

Assignment Help Financial Management
Reference no: EM131336368

The real risk-free rate is 2.25%. Inflation is expected to be 1.5% this year and 4.75% during the next 2 years. Assume that the maturity risk premium is zero.

A. What is the yield on 3-year Treasury securities? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM131336368

Questions Cloud

Design a main program that calls the procedure quick search : Design a main program that calls the procedure quick search. The main program should be able to read and search successive blocks of text.
Goals of an early identification and intervention system : A lack of communication is the primary complaint people have about their immediate supervisor. Is this correct? Why or why not? Explain progressive discipline and the three (3) goals of an Early Identification and Intervention System
Evaluating two different cookie-baking ovens : You are evaluating two different cookie-baking ovens. The Pillsbury 707 costs $25,000, has a six-year life, and has an annual OCF (after tax) of -$5,000 per year. The Keebler CookieMunster costs $40,000, has a seven-year life, and has an annual OCF (..
Conduct a literature review on qualitative articles : Conduct a literature review on qualitative or quantitative articles and find six to eight peer-reviewed primary research articles that provide critical support for the specific health care administration problem or barrier you want to address in y..
What is yield on three-year treasury securities : The real risk-free rate is 2.25%. Inflation is expected to be 1.5% this year and 4.75% during the next 2 years. Assume that the maturity risk premium is zero. What is the yield on 3-year Treasury securities?
Establish whether the name or the sentinel : When this is done the test: (current nil) can be dropped and replaced by a single test outside the loop to establish whether the name or the sentinel has been found.).
Ethical situation in the middle east : Select a current news item pertaining to an ethical situation in the Middle East that has arisen in a business or non-profit organization. Describe the situation and the organization. Determine what made or makes this situation unethical.
What are the dividend yield and percentage capital gain : A stock is selling today for $50 per share. At the end of the year, it pays a dividend of $3 per share and sells for $56. What is the total rate of return on the stock? What are the dividend yield and percentage capital gain?
Explain the budget cycle : What is the typical sequence of events involved in the employee grievance process? Explain the budget cycle and the four sequential steps critical for a top police executive to maintain during the budget year

Reviews

Write a Review

Financial Management Questions & Answers

  What must the expected return on the market be

A stock has an expected return of 8%, its beta is .60, and the risk-free rate is 3%. What must the expected return on the market be?

  The monthly returns for general dynamics-starbucks

At the beginning of the month, you owned $5,000 of General Dynamics, $4,000 of Starbucks, and $7,000 of Nike. The monthly returns for General Dynamics, Starbucks, and Nike were 7.50 percent, −1.66 percent, and −0.69 percent. What is your portfolio re..

  Limit-order book for share of stock

Consider the following limit-order book for a share of stock. The last trade in the stock occurred at a price of $55. Limit Buy Orders Limit Sell Orders Price Shares Price Shares $ 54.75 500 $ 55.25 200 54.50 400 55.50 200 54.25 500 58.75 300 54.00 2..

  Calculate the equivalent uniform annual worth of the machine

A machine costs $73,000 initially and will have a salvage value of $10,000 after 9 years. It will also have an operating cost of $21,000 in year 1, with 5% continuing increases each year thereafter to year 9. The MARR is 19% per year. Compute the Equ..

  Health care organizations capital projects analysis

Explain the Time Value of Money and give two examples of specific use/application in a health care organization's capital projects analysis, accounting for dollar value differences over time.

  Will new control system be adequate for the problem

Stoneworth Paving Company specializes in highway paving jobs for state of Virginia. When the State first awarded Stoneworth the contract, they stipulated a 1% penalty for each week Stoneworth was late on a completion date. If you were Preston, what c..

  What is the estimated current value of the ira

What is the estimated current value of the IRA and the estimated income taxes on the difference between the estimated current values of assets and the estimated current amounts of liabilities and their tax bases?

  What is the bonds real rate of return

A $1,000 par value bond carries a coupon rate of 6.5 percent and has a yield to maturity of 7.29 percent. The inflation rate is 3.13 percent. What is the bond’s real rate of return?

  Profit diagram for the straddle mentioned

An investor purchases a call on a stock, with an exercise price of $45 and premium of $3, and a put option with the same maturity that has an exercise price of $45 and premium of $2. Please draw a payoff diagram and a profit diagram for the ‘straddle..

  The common equity return

Suppose the current long-term government bond yield is 2.1 percent and the estimated market risk premium is 4.8 percent. Fastest Company's beta is estimated to be 1.05. Using CAPM, estimate Fastest Company's cost of common equity.

  Project to ensure non-negative net present value

Och, Inc., is considering a project that will result in initial after-tax cash flow of $3.5 million at the end of the first year, and these cash flows will grow at a rate of 4% per year indefinitely. What should be the initial investments of this pro..

  Minimum required rate of return-net present value

A company has a minimum required rate of return of 9%. It is considering investing in a project that costs $175,000 and is expected to generate cash inflows of $70,000 at the end of each year for 3 years. The approximate net present value of this pro..

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