For each of the following scenarios, decide whether the dema…

For each of the following scenarios, decide whether the demand for  U.S. government bonds will increase, decrease, or remain the same, holding other things constant. The economy experiences unexpected inflation. [demand1] A rise in global uncertainty leads foreign investors to look to the safety of U.S. bonds. [demand2] U.S. tax cuts expire, meaning the government might collect more tax revenue during the next year. [demand3] Brokerage fees for buying shares of corporate stock increase. [demand4] A multi-country war ends after all involved nations sign a peace treaty. [demand5]

Assume that one year interest rates are expected to be 5%, 7…

Assume that one year interest rates are expected to be 5%, 7%, 8%, 9%, 9% over the next five years. Fill in the table by calculating the expected interest rate for each bond according to expectations theory. You must type each interest rate out to the second decimal place and you must include the percent sign. Bond Duration and Expected Interest Rates Bond Duration Expected Interest Rate 2-year bond [2year]% 3-year bond [3year]% 4-year bond [4year]% 5-year bond [5year]%   Suppose investors receive a liquidity premium on the 2-year, 3-year, 4-year, and 5-year bonds equal to 0.15%, 0.25%, 0.35%, and 0.45%, respectively. Factoring in these liquidity premiums complete the table below: Bond Duration and Expected Interest Rate with Liquidity Premium Bond Duration Expected Interest Rate + Liquidity Premium 2-year bond [lp2]% 3-year bond [lp3]% 4-year bond [lp4]% 5-year bond [lp5]% Is the yield curve in the second table upward sloping, downward sloping or neither? [yieldslope]

When supervisors select (in order) the best performer, then…

When supervisors select (in order) the best performer, then the worst performer, then the second best performer, then the second worst performer, and so forth, alternating between top and bottom until the list is completed, they are using which measurement method?