1. One-year Treasury securities yield 5%, 2-year Treasury securities yield 5.5%, and 3-year Treasury securities yield 6%. Assume that the expectations theory holds. What does the market expect will be the yield on 1-year Treasury securities two years from now?
2. A stock is trading at $ 32.34. The interest rate is r = 0.01 (continuous compounding). Enter the prices of the 1 month and 12 month futures on the stock. (Give answer with two decimals For example, $32.34)
3. Chik's Chickens has average accounts receivable of S5,733. Sales for the year were $9,200. What is its average collection period? (Use 365 days in a year. Do not round intermediate calculations. Round your answer to 2 decimal places.) Average collection period days.