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Answer to The federal funds rate is Group of answer. Business; Economics; Economics questions and answers; The federal funds rate is Group of answer choices also known as the prime rate. the interest rate banks charge each other on overnight loans. another name for the real interest rate. the interest rate on the 3-month Treasury bill.
The inferred real interest rate of Treasury bills is %. (Round to two decimal places.)The inferred real interest rate of Treasury bonds is %. (Round to two decimal places.) Should the 3-month real interest rate turn out to be less than the 30-year real interest rate? (Select the best choice below.) A. Yes, the 30-year real interest rate should ...
a. The current 3-month Treasury bill rate is 2.88 percent, the 30-year Treasury bond rate is 5.41 percent, the 30-year AAA-rated corporate bond rate is 6.52 percent, and the inflation rate is 2.01 percent. b. The real risk-free rate of interest is the difference between the calculated average yield on 3-month Treasury bills and therinflation ...
The current 3-month Treasury bill rate is 2.86 percent, the 30-year Treasury bond rate is 5. 27 percent, the 30-year AAA-rated corporate bond rate is 6.52 percent, and the inflation rate is 2.02 percent b. The real risk-free rate of Interest is the difference between the calculated average yield on 3-month Treasury bills and the inflation rate ...
A 3-month $25,000 treasury bill with a simple annual discount rate of 0.25% was sold in 2016. Assume 365 days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. (a) The price of the T-bill was $] (Round to the nearest cent as needed.)
Assume that the current? 3-month Treasury bill rate is 4.89 ?percent, the? 30-year Treasury bond rate is 8.12 Real interest? rates: approximation method?) The CFO of your firm has asked you for an approximate answer to this? question: What was the increase in real purchasing power associated with both? 3-month Treasury bills and? 30-year ...
Under ”Money, Banking, & Finance” select ”Interest Rates” and then select the ”Treasury Bills” then ”3-Month Treasury Bill: Secondary Market Rate”. Describe how this rate has changed in recent months. Using the information in this chapter, explain why the interest rate changed as it did. 1 Q4 Ch 2
He believes that changes in short-term rates are significant in explaining long-term interest rates. He estimates the model Dlong-60 + 61Dshort + ε, where Dlong is the change in the long-term interest rate (10-year Treasury bill) and Dshort is the change in the short-term interest rate (3-month Treasury bill).
A 3-month $20,000 treasury bill with a simple annual discount rate of 0.22% was sold in 2016. Assume 365 days in a year. (a) Find the price of the treasury bill (T-bill). (b) Find the actual interest rate paid by the Treasury. (a) The price of the T-bill was $ (Round to the nearest cent as needed.)
Using five years of monthly data (n = 60), he estimates the model Dlong = Bo + B1 Dshort + ε, where Dlong is the change in the long-term interest rate (10-year Treasury bill) and Dshort is the change in the short-term interest rate (3-month Treasury bill). A portion of the regression results is shown in the accompanying table.