Explain how a yield curve is constructed and what its shape reveals about interest rates
What will be an ideal response?
Answer: A yield curve plots a bond's term to maturity to its yield to maturity at any given point in time. A particular yield curve exists for only a short period of time. As the markets change, so do yield curves. Yield curves are constructed by plotting the yields for a group of bonds that are similar in all respects except maturity. The most common yield curve is upward-sloping, which means that long-term yields are higher than short-term yields. An inverted curve indicates that short-term interest rates are higher than long-term rates. A humped curve indicates that intermediate-term bonds have the highest yields. A flat curve indicates that yields are pretty much the same regardless of the bond term.
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Researchers agree that there are various levels of commitment to an attitude. The lowest form of involvement is ________
A) identification B) compliance C) internalization D) commitment
Exhibit 22-2 On January 1, 2017, Nathan, Inc purchased a machine for $56,000. Eight-year, straight-line depreciation with no salvage value was used through December 31, 2018. On January 1, 2019, it was estimated that the total useful life of the machine from acquisition date was ten years. ? Refer to Exhibit 22-2. Accordingly, the appropriate accounting change was made in 2019. How much
depreciation expense for this machine should Nathan record for the year ended December 31, 2019? A) $4,200 B) $5,250 C) $7,000 D) $0
The sample size determines:
A) how accurate the sample results will be B) how representative the sample is C) how much the sample will cost D) which firm will be used to actually draw the sample from the population E) if there is an adequate number to represent the entire population.
Trust is built over a short period of time
Indicate whether the statement is true or false