1. Suppose the intrest rate on a 3 year Treasury Note is 1.75% and 5 year notes are yielding 4.50%
Based on the expectations theory, what does the market believe that 2 year Treasuries will be yielding 3 years from now?
2. A firm's cost of capital is 8%. Projects A and B are mutually exclusive project-investment oppruntunities with IRRs of 6% and 7% respectfully. Which project would you choose? Either A, B, Both, or Neither
3. List and describe the five supporting documents that are typically required when applying for a loan.