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Cost of Borrowing 2.00% Yield Curve is flat (at end of period) Years Asset 1 Asset 2 Asset 3 Asset 4 Asset 5 1 $

Cost of Borrowing 2.00%
Yield Curve is flat
(at end of period)
Years Asset 1 Asset 2 Asset 3 Asset 4 Asset 5
1 $ 1,500 $ 1,250
2 $ 1,500 $ 300 $ 1,600
3 $ 1,500 $ 1,800
4 $ 100,000 $ 101,500 $ 400 $ 102,000 $ 109,000

Question:

Classify the above assets into Stock (with forecasted dividends), Floating Rate Notes, Fixed Deposit, Zero Coupon Bond or Fixed Rate Bond. Please provide reasons too.

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