According to the local expectations theory, what would be the difference in the onemonth total return if
Question:
According to the local expectations theory, what would be the difference in the onemonth total return if an investor purchased a five-year zero-coupon bond versus a twoyear zero-coupon bond?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 83% (6 reviews)
The Local Expectations Theory is a hypothesis that suggests that the shape of the yield curve is determined by the markets expectations of future shor...View the full answer
Answered By
Saikumar Ramagiri
Financial accounting:- Journal and ledgers, preparation of trail balance and adjusted trail balance Preparation of income statement, retained earning statement and balance sheet Banks reconciliation statements Financial statement analysis Cash flow statement analysis (both direct and indirect methods) All methods of Depreciations Management Accounting:- Ratios Budgeting control Cash budget and production budget Working capital management Receivable management Costing:- Standard and variance costing Marginal costing and decision making Cost-volume-profit analysis Inventory management (LIFO, FIFO) Preparation and estimation of cost sheet Portfolio management:- Calculation of portfolio standard deviation or risk Calculation of portfolio expected returns CAPM, Beta Financial management:- Time value of money Capital budgeting Cost of capital Leverage analysis and capital structure policies Dividend policy Bond value calculations like YTM, current yield etc International finance:- Derivatives Futures and options Swaps and forwards Business problems Finance problems Education (mention all your degrees, year awarded, Institute/University, field(s) of major): Education Qualification Board/Institution/ University Month/Year of Passing % Secured OPTIONALS/ Major ICWAI(inter) ICWAI inter Pursuing Pursuing - M.com(Finance) Osmania University June 2007 65 Finance & Taxation M B A (Finance) Osmania University Dec 2004 66 Finance & Marketing. B.Com Osmania University June 2002 72 Income Tax, Cost & Mgt, Accountancy, Auditing. Intermediate (XII) Board of Intermediate May 1999 58 Mathematics, Accountancy, Economics. S S C (X) S S C Board. May 1997 74 Mathematics, Social Studies, Science. Tutoring experience: • 10 year experience in online trouble shooting problems related to finance/accountancy. • Since 6 Years working with solution inn as a tutor, I have solved thousands of questions, quick and accuracy Skills (optional): Technical Exposure: MS Office, SQL, Tally, Wings, Focus, Programming with C Financial : Portfolio/Financial Management, Ratio Analysis, Capital Budgeting Stock Valuation & Dividend Policy, Bond Valuations Individual Skills : Proactive Nature, Self Motivative, Clear thought process, Quick problem solving skills, flexible to complex situations. Achievements : 1. I have received an Award certificate from Local Area MLA for the cause of getting 100% marks in Accountancy during my Graduation. 2. I have received a GOLD MEDAL/Scholarship from Home Minister in my MBA for being the “Top Rank student “ of management institute. 3. I received numerous complements and extra pay from various students for trouble shooting their online problems. Other interests/Hobbies (optional): ? Web Surfing ? Sports ? Watching Comics, News channels ? Miniature Collection ? Exploring hidden facts ? Solving riddles and puzzles
4.80+
391+ Reviews
552+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
An investor buys a 31 year zero coupon bond (Face value of $1,000) at a time when the yield is 5.50%, and holds it for one year, by which time the yield drops to 5.25%. If the capital gains tax rate...
-
Homer Simpson is considering three investment options. Option 1 involves investing in a zero coupon bond for two years. Option 2 involves investing in a five-year zero coupon bond and then selling...
-
Draw the NFA, DFA and minimized DFA for the following regular expression. RE: (xly) x* This RE can generate strings, such as: xxxxxxxxxx, yxxxxxxxxxx, x, y
-
Two different types of tips can be used in a Rockwell hardness tester. Eight coupons from test ingots of a nickel based alloy are selected, and each coupon is tested twice, once with each tip. The...
-
The following information was in the annual report of Rover Company: Required a. Based on these data, compute the following for 2009, 2008, and 2007: 1. Percentage of earnings retained 2....
-
Use the data in the following table to determine the average annual growth rate for each country in terms of real GDP growth and per capita real GDP growth (real GDP is in billions of U.S. dollars,...
-
What can Johnny Tan do to revitalise his demoralised salesforce?
-
King City Specialty Bikes (KCSB) produces high-end bicycles. The costs to manufacture and market the bicycles at the companys volume of 2,000 units per month are shown in the following table: The...
-
You have the following information about a lease agreement: Nero Ltd is the lessee. 5-year lease contract from 1 January 2022. The asset was new on 1 January 2022 (cost of 10m to the Lessor). Annual...
-
Compare the segmented market and the preferred habitat term structure theories.
-
What is the SOFR rate, and which market conditions does it reflect?
-
Recording and Amortization of Intangibles Power glide Company, organized in 2009, has set up a single account for all intangible assets . The following summary discloses the debit entries that have...
-
Make an argument based on Gauss's law that a charged object cannot be held in stable translational equilibrium by electric fields alone. For a start, assume there is no other charged object in the...
-
The magnitude of the electric field a distance \(R\) away from a particle carrying charge \(q\) is \(E_{0}\). Now consider this same quantity of charge \(q\) distributed uniformly throughout the...
-
Two concentric spherical metal shells are insulated from each other and from the surroundings. The inner shell carries a charge \(+2 q\), and the outer shell carries a charge \(-q\). In electrostatic...
-
Some charged particles are suspended inside a hollow metal object by supports made of a material that is an electrical insulator. The metal object has charge \(+q\) distributed over its outer surface...
-
A particle carries a charge of \(6.0 \mu \mathrm{C}\). Calculate the electric flux through a spherical Gaussian surface that is centered on the particle and has a radius of (a) 0. 04 m and (b) 0.08 m.
-
Multiple Choice Questions: 1. The fraud reporting process can be defined as: a. The process of submitting reports to authorities and insurance companies. b. The process of documenting frauds...
-
Compare and contrast licensing and subcontracting.
-
How do information systems support the activities of managers and management decision making? a. Compare the descriptions of managerial behavior in the classical and behavioral models. b. Identify...
-
How do business intelligence and business analytics support decision making? a. Define and describe business intelligence and business analytics. b. List and describe the elements of a business...
-
How do different decision-making constituencies in an organization use business intelligence , and what is the role of information systems in helping people working in a group make decisions more...
-
Explore and discuss the impact of an integrated management system on organizational performance, including its influence on operational efficiency, risk management, cost - effectiveness, and overall...
-
After one week, AyurWhistler, has made a strategic decision to invest in a new Heating, Ventilation, and Air Conditioning ( HVAC ) system. The system features dual - zone climate control, an advanced...
-
3) The plate shown is contained within the x-z plane. The cables AB and CD lie within parallel x-y planes. The tension in each cable is 50 N. Determine the moment exerted on the plate by the two...
Study smarter with the SolutionInn App