The yield to maturity on one-year zero-coupon bonds is 8%. the yield to maturity on two-year zero-coupon bonds is 9%. (lo 10-7) what is the forward rate of interest for the second year? if you believe in the expectations hypothesis, what is your best guess as to the expected value of the short-term interest rate next year? if you believe in the liquidity preference theory, is your best guess as to next year’s short-term interest rate higher or lower than in (b)?

Most states have licensing registration requirements for child care centers and family daycare homes. these usually include minimum standard for operation. which of the following would you most likely find required in a statement of state licensing standards for child care centers?

An insurance company estimates the probability of an earthquake in the next year to be 0.0015. the average damage done to a house by an earthquake it estimates to be $90,000. if the company offers earthquake insurance for $150, what is company`s expected value of the policy? hint: think, is it profitable for the insurance company or not? will they gain (positive expected value) or lose (negative expected value)? if the expected value is negative, remember to show "-" sign. no "+" sign needed for the positive expected value

If jobs have been undercosted due to underallocation of manufacturing overhead, then cost of goods sold (cogs) is too low and which of the following corrections must be made? a. decrease cogs for double the amount of the underallocation b. increase cogs for double the amount of the underallocation c. decrease cogs for the amount of the underallocation d. increase cogs for the amount of the underallocation