[Related to Solved Problem 5.2b] Use the data on Treasury securities in the following table to answer the question: Date 03/05/2010 Source: U.S. Department of the Treasury. 1 year 0.38% 2 year 0.86% 3 year 1.6% Assuming that the liquidity premium theory is correct, on March 5, 2010, what did investors expect the interest rate to be on the one-year Treasury bill two years from that date if the term premium on a two-year Treasury note was 0.03% and the term premium on a three-year Treasury note was 0.04%? The expected interest rate is %. (Round your response to two decimal places.)
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- please give me answer relatablePlease help me!Treasury notes and bonds. Use the information in the following table: . Assume a $100,000 par value. What is the yield to maturity of the August 2000 Treasury bond with semiannual payment? Compare the yield to maturity and the current yield . How do you explain this relationship? What is the yield to maturity of the August 2000 Treasury bond?
- Suppose the following table shows yields to maturity of U.S. Treasury securities as of January 1, 2000. Based on the data in the table, calculate the implied forward one-year and two-year rates at January 1, 2002. y1=3.0% y2=3.5% y3=4.0% y4=4.5%es www Year 1 2 3 4 5 Returns X59200 15 % -22 10 10 Y 22% 30 -27 "* 10 21 Using the returns shown above, calculate the arithmetic average returns, the variances, and the standard deviations for X and Y. (Do not round intermediate calculations. Enter your average return and standard deviation answers as a percent rounded to 2 decimal places, e.g., 32.16. Enter your variance answers rounded to 5 decimal places, e.g., .16161.) Average returns Variances Standard deviations X 15 % % % Y % &Consider the following table for a seven-year period: Returns Year U.S. Treasury Bills Inflation 3.55% -1.17% 1234567 3.40 4.30 4.72 2.52 1.40 1.13 Average real return -2.31 -1.21 0.63 -6.45 -9.37 -1.32 What was the average real return for Treasury bills for this time period? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) %
- Consider the following table for a seven-year period: Year 1 2 34467. 5 U.S. Treasury Bills 4.00% 3.85 4.75 5.17 2.97 1.85 1.58 Returns Average real return. Inflation -1.26% -2.40 -1.30 0.72 -6.54 -9.46 -1.41 What was the average real return for Treasury bills for this time period? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g... 32.16. %The Wall Street Journal reports that the rate on three-year Treasury securities as 1.20 percent and rate on five-year Treasury securities is 2.15 percent. According to the unbiased expectations theory, what does the market expect the two-year Treasury rate to be three years from today, E (3r2)?Unbiased Expectations Theory One-year Treasury bills currently earn 5.80 percent. You expect that one year from now, one- year Treasury bill rates will increase to 6.05 percent. If the unbiased expectations theory is correct, what should the current rate be on two-year Treasury securities?
- . Treasury notes and bonds. Use the information in the following table: What is the price in dollars of the February 2000 Treasury note with semiannual payment if its par value is $100,000? What is the current yield of this note? What is the price in dollars of the February 2000 Treasury note? (Round to the nearest cent.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Today is February 15, 2008 Type Issue Date Price Note Feb 2000 Coupon Rate 7.25% Maturity Date 2-15-2010 YTM Current Yield Rating 4.324% AAATreasury notes and bonds. Use the information in the following table: . What is the price in dollars of the February 2001 Treasury note with semiannual payment if its par value is $100,000? What is the current yield of this note? Treasury note is a U.S. government bond with a maturity of between two and ten years. Par value is the principal amount to be repaid at the maturity of the bond. Current yield is the annual bond coupon payment divided by the current price.someone please help me with this!