According to the graph of WACC for Union Pacific, which of the following is (are) true? 1) The cost of equity is an increasing function of the debt-equity ratio. II) The cost of debt is an increasing function of the debt-equity ratio. III) The weighted average cost of capital (WACC) is a decreasing function of the debt-equity ratio. Multiple Choice I only I and II only Ill only I, II, and III a. If the one-year discount factor is 0.9174, what is the one-year interest rate? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) b. If the two-year interest rate is 9.0%, what is the two-year discount factor? (Do not round intermediate calculations. Round your answer to 4 decimal places.) c. Given these one- and two-year discount factors, calculate the two-year annuity factor. (Do not round intermediate calculations. Round your answer to 4 decimal places.) d. If the PV of $10 a year for three years is $25.31, what is the three-year annuity factor? (Do not round intermediate calculations. Round your answer to 4 decimal places.) e. From your answers to (c) and (d), calculate the three-year discount factor. (Do not round intermediate calculations. Round your answer to 4 decimal places.) a. al Interest rate % b. Discount factor C. Annuity factor d. Annuity factor e. Discount factor If a bond's yield to maturity does not change, the return on the bond each year will be equal to the yield to maturity. Confirm this for both a premium and a discount bond using a 4-year 4.1 percent coupon bond with annual coupon payments and a face value of $1,000. a. Assume the yield to maturity is 3.1 percent. b. Assume the yield to maturity is 5.1 percent