Tuesday

September 16, 2014

September 16, 2014

Posted by **Anonymous** on Wednesday, February 13, 2013 at 4:02pm.

ECONOMIC FORECAST INTEREST RATE FORECAST

Recession 6 percent

Constant growth 9 percent

Inflation 14 percent

A. What is the expected interest rate under Ima's forecast?

B. What is the variance and standard deviation of Ima's interest rate forecast?

C. What is the coefficient of variation of Ima's interest rate forecast?

D. If the current long-term Treasury bond interest rate is 8 percent, should Ima consider purchasing a Treasury Bond? Why or why not?

**Answer this Question**

**Related Questions**

finance - Austin Electronics expects sales next year to be at $900,000 if the ...

finance - Austin Electronics expects sales next year to be at $900,000 if the ...

finance - A firm wishes to maintain an internal growth rate of 4.5 percent and a...

Finance - Marcel Co is growing quickly. Dividends are expected to grow at a 30 ...

math - A bond has an average return of 6.8 percent and a standard deviation of 4...

Statistics - Calculate each binomial probability: a. Fewer than 4 successes in ...

Statistic - 6.18 Calculate each binomial probability: a. Fewer than 4 successes ...

Finance - A company is considering a plan that has different profit results ...

Finance - Willamette Forests is considering a new software package that may ...

STOCKS & BONDS - The real risk-free rate of return has been estimated to be 2 ...