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Author Question: The one-year interest rate is 4. The interest rate for a two-year security is 6. The one-year ... (Read 211 times)

imanialler

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The one-year interest rate is 4. The interest rate for a two-year security is 6. The one-year
  interest rate one year from now is 8.34. According to the liquidity preference theory, the risk
  premium for the second one-year investment is
 
  A) 0.34. B) 0.50. C) 1.66. D) 0.30.

Question 2

Your son will be attending an expensive university in 12 years. You deposit 5,000 per year for 12 years,
  beginning today. How much money will be in the college fund 12 years from now if the fund earns 8 per
  year?
 
  What will be an ideal response?


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Sarahjh

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imanialler

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Reply 2 on: Jul 11, 2018
Excellent


Bigfoot1984

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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