Which of these is NOT a theory that explains the shape of the term structure of

Question

Which of these is NOT a theory that explains the shape of the term structure of interest rates? liquidity theory market segmentation theory short term structure of interest rates theory unbiased expectations theory The past five monthly returns for PG Company are 3.25 percent, -1.45 percent, 4.35 percent, 6.49 percent, and 3.75 percent. What is the average monthly return? 1.366% 1.608% 3.278% 3.858% Which of the following would NOT be an example of an agency bond? Federal Loan Bank bond Student Loan Marketing Association bond Fannie Mae bond Treasury bills Which statement is true? The larger the standard deviation, the lower the total risk. The larger the standard deviation, the higher the total risk. The larger the standard deviation, the more portfolio risk. The standard deviation is not an indication of total risk. TIPS Interest and Par Value A 3 3/4 percent TIPS has an original reference CPI of 175.8. If the current CPI is 207.7, what is the current interest payment and par value of the TIPS? (Assume semi-annual interest payments and $1,000 par value.) $1000, $18.75, respectively $1000, $37.50, respectively $1181.46, $22.15, respectively $1181.46, $37.50, respectively

Explanation / Answer

Question 32:

Average interest=sum of all interests of all years/no of years=(3.25-1.4+4.35+6.49+3.75)/5=16.39/5=3.278

Question33:

2. Student loan marketing association bond.

It is a agency bond.

Question 34:

Standard deviation indicates total risk, so if the standard deviatioon is high then risk is also high.

2.The larger the standard deviation, the higher total risk

Question 35:

Par value=$1,000

Interest rate of tips=3 3/4=3.75%

so interest for annum=$1,000*3.75%=$37.5

Interest for semi annual=$37.5/2=$18.75

2.$1,000,$18.75 resepctively.

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.