You read in The Wall Street Journal that 30-day T-bills are currently yielding 4.8%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium - 3.50% • Liquidity premium - 0.3% . Maturity risk premium - 2.30% • Default risk premium - 2.00% On the basis of these data, what the real risk-free rate of return? Round your answer to two decimal places.

Q: Explain consistency concept.

A: Consistency: Consistency principle emphasizes that companies should adhere to same accounting…

Q: Define control decisions.

A: Managerial accounting: Managerial accounting is a system, or a process of collecting and organizing,…

Q: Important Factors to Consider When Building a TCO Model Example of a TCO Model?

A: TCO model or Total Cost Ownership Model is an model used to estimate the cost of product or a…

Q: AIS conceptual design

A: AIS stands for Accounting Information System. The process of keeping the accounts and financial…

Q: How to choose a Benchmark?

A: Investors select a market index (or a mix of indices) as the portfolio's benchmark. An index…

Q: Describe the benefits of benchmarking.

A: Benchmarking is a way to measure something in corporate environment, it is also used to promote…

Q: Distinguish between reverse engineering and reengineering.

A:

Q: Identify activities that consume resources.

A: Activity-based costing also known as ABC is a costing method that assigns indirect cost to…

Q: What is activity based management? Why is it important? taking example

A: Activity based management:Activity based management is the process of applying activity-based costs…

Q: uss how to choose the appropriate benchmark for performance e

A: Choosing appropriate benchmark is very important for evaluation of performance of the portfolio.

Q: Question One FRS for SMEs- Who can use it? Highlights of the Model(s)? Discuss key differences…

A: FRS for SMEs (Financial Reporting Standard for Small and Medium-sized Entities) is a financial…

Q: Explain the PSA prepayment model?

A: What Is a Prepayment Model? In lending, a prepayment model is used to estimate the level of…

Q: explain about functional and non functional requirements

A: The question is asking to explain the concepts of functional and non-functional requirements, which…

Q: Define commitment fee

A: In financial terms, commitment is a promise made by lender to borrower to provide loan by specific…

Q: Define scenario analysis

A: Scenario means a situation or circumstance which is influenced by various factors. Various if and…

Q: Analyze AIS development

A: Accounting Information System( AIS) development refers to the process of creating, designing,…

Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.