Why is the t-bills return independent of the state of the economy? Do t-bills promise a completely
Question:
Why is the t-bill’s return independent of the state of the economy? Do t-bills promise a completely risk-free return?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 58% (12 reviews)
The 8 percent tbill return does not depend on the state of the economy because the treasury must and ...View the full answer
Answered By
Gabriela Rosalía Castro
I have worked with very different types of students, from little kids to bussines men and women. I have thaught at universities, schools, but mostly in private sessions for specialized purpuses. Sometimes I tutored kids that needed help with their classes at school, some others were high school or college students that needed to prepare for an exam to study abroud. Currently I'm teaching bussiness English for people in bussiness positions that want to improve their skills, and preparing and ex-student to pass a standarized test to study in the UK.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Corporate Finance A Focused Approach
ISBN: 978-1439078082
4th Edition
Authors: Michael C. Ehrhardt, Eugene F. Brigham
Question Posted:
Students also viewed these Corporate Finance questions
-
Why is the T-bills return independent of the state of the economy? Do T-bills promise a completely risk-free return? Explain.
-
(1) Why is the T-bills return independent of the state of the economy? Do T-bills promise a completely risk-free return? (2) Why are Alta Industries returns expected to move with the economy whereas...
-
The risk free rate is 7%, the return in the market is 10%, and the beta is 1.30. What return must you receive to be satisfied that you are being fairly compensated for the risk of the firm?
-
Resolve the force F1 into components acting along the u and v axes and determine the magnitudes of the components. Given: F1 = 250 N F2 = 150 N θ1 = 30 deg θ2 = 30 deg θ3 = 105 deg...
-
Tru Developers, Inc., sells plots of land for industrial development. Tru recognizes income for financial reporting purposes in the year it sells the plots. For some of the plots sold this year, Tru...
-
For example, a bank has assets worth IDR 100 billion and equity of IDR 10 billion. This bank's leverage ratio is 10. If the value of the bank's assets falls 5% to IDR 95 billion, the bank's equity...
-
Discuss the objectives and classification of criminal offenses.
-
The Crescent Drilling Company owns the drilling rights to several tracts of land on which natural gas has been found. The amount of gas on some of the tracts is somewhat marginal, and the company is...
-
Comments 1. It seems as though any problem involving the time value of money can be solved using any of the tables or equations. The key is to always make it easy on yourself. Solve it in a way that...
-
Harold Filbert is 30 years of age and his salary next year will be $20,000. Harold forecasts that his salary will increase at a steady rate of 5 percent per annum until his retirement at age 60. a....
-
What are investment returns? What is the return on an investment that costs $1,000 and is sold after one year for $1,100?
-
Why are Alta Ind.s returns expected to move with the economy whereas Repo Mens are expected to move counter to the economy?
-
A curve is such that d 2 y/dx 2 = 20e -2x . Given that dy/dx = -8 when x = 0 and that the curve passes through the point (1,5/e 2 ), find the equation of the curve.
-
At the end of 2015, Wasicsko Company has 180,000 of cumulative temporary differences that will result in reporting future taxable amounts as follows. Tax rates enacted as of the beginning of 2014...
-
On January 2, 2015, Adani Inc. sells goods (cost R\($6\),000) to Geo Company in exchange for a zero-interest-bearing note with face value of R\($11\),000, with payment due in 12 months. The fair...
-
Gingrich Importers provides the following pension plan information. Instructions (a) From the data above, compute the actual return on the plan assets for 2015. (b) Compute asset gain or loss, and...
-
At December 31, 2015, Redmond Company has outstanding three long-term debt issues. The first is a \($2\),000,000 note payable which matures June 30, 2018. The second is a \($6\),000,000 bond issue...
-
Assume the same information as in E19-14 for Callaway Corp. Instructions (a) Record income tax expense, deferred income taxes, and income taxes payable for 2015, assuming that it is probable that...
-
Use the following information to answer question. What determines the voting behavior in a presidential election? An economist believes that people vote their pockets. He argues that economic...
-
a. What is meant by the term tax haven? b. What are the desired characteristics for a country if it expects to be used as a tax haven? c. What are the advantages leading an MNE to use a tax haven...
-
Using the Hckel 4n + 2 rule, determine whether each of the following compounds is likely to be aromatic. Explain how you arrived at the -electron count in each case. (a) (c) CO (b) -C=C- (d) :1
-
You have an opportunity to purchase a piece of vacant land for $30,000 cash. If you buy the property, you plan to hold it for 15 years and then sell it at a profit. During this period, you would have...
-
An individual's salary is now $32,000 per year and he anticipates retiring in 30 years. If his salary is increased by $600 each year and he deposits 10% of his yearly salary into a fund that earns7%...
-
Stamp collecting has become an increasingly popular-and expensive-hobby. One favorite method is to save plate blocks (usually four stamps with the printing plate numbering the margin) of each new...
-
What advantage does the private resident buying oce (store-owned offices) aord its stores that independent buying oces do not? Describe two functions of an independent buying office. Describe the 4...
-
10. Consider the following data - == - -5 1 3 4 -1 0 1 1 (a) Find the Least Squares Regression Line. (b) Find the coefficient of correlation and determination. (c) Find a 90% confidence interval for...
-
Which point on the graph y=4x are closest to the point (0, 2)? (Hint: consider the distance formula between two points)
Study smarter with the SolutionInn App