Suppose that the yield curve shows that the one year bond yield is 3 percent, the two year bond is 4 percent, and the three year yield is 5 percent. Assume that the risk premium on the year bond is zero, the risk premium on the two year bond is 1 percent, and the risk premium on the three year bond is 2 percent.

a) What are the expected one year interest rates next year and the following year?

b) If the risk premiums were all zero, as in the expectations hypothesis, what would the slope of the yield curve be?

Which of the following mechanisms would be most likely to motivate managers to act in the best interests of shareholders? a) decrease the use of restrictive covenants in bond agreements, b) take actions that reduce the possibility of a hostile takeover, c) elect a board of directors that allows managers greater freedom of action, d) increase the proportion of executive compensation that comes from stock options and reduce the proportion that is paid as cash salaries, e) eliminate a requirement that members of the board directors have a substantial investment in the firm's stocks

In addition to having a bachelor's degree in accounting, a certification will increase a tax accountant's job opportunities and allow them to file reports with the

From a business perspective, an information system provides a solution to a problem or challenge facing a firm and represents a combination of management, organization, and technology elements. the organization's hierarchy, functional specialties, business processes, culture, and political interest groups are components of which element of information systems?