Now assume that the Liquidity Preference theory is correct (versus the data for the Pure Expectations theory above), and the Maturity Risk Premium can be defined as (0.10%)(t-1), where t is the number of years until maturity. Given this information, determine how much $126,000, to be deposited at the beginning of Year 3, and held over Years 3, 4, 5, and 6 (4 years), would be worth at the end of Year 6.

Answer is explained in the explanations section below.

Explanation:

Note: This question is incomplete and lacks necessary data to solve. It actually lacks the tabulated data from which necessary information must be extracted to solve for this question. However, I have found similar question on the internet but with different values in it. Since, this question is altered and lacks its data. So, I will using the data of complete question that I have found. I will solving that for the sake of understanding and concept, so that you can solve such questions once data is complete. Thank you.

Data in the Complete question:

Maturity Risk Premium = (0.16%)(t-1)

Determine how much of $42000, to be deposited at the beginning of Year 3, and held over years 3, 4, 5 and 6 (4 years) would be worth at the end of Year 6.

So,

The necessary missing data is attached in the attachment. Which is given partial in the question. Furthermore, I have filled it completely and attached in the attachment with the name complete table. Refer to that attachment as well.

SO,

Average 4-Year Base Rate for Years 3-6:(0.063 + 0.075 + 0.087 + 0.069) / 4=0.0735

Maturity Risk Premium=(0.16%)*(4-1)=0.0048

4-Year Rate for Years 3-6=0.0735 + 0.0048=0.0783=7.83%

FV=($42,000)*(1.0783)4=$56,781.61

FV = $56,781.61

In conclusion, in this way, you can solve such questions.

The statement is true

Explanation:

Early adopters of technology increase job security. Although technology has led to a substantial decline in the employment rate. The overall job security of employees has increased when technology is adopted because it increases the overall working productivity of employees and decreases the cost of production. Early adoption of technology is significantly crucial for future growth and long-run stability, and many firms and organizations have integrated early adoption of technology to compete with its competitors.