Suppose the yield curve today is upward sloping. a. What does this mean for expectations today of future rates if you believe the Expectations Theory? The Term Premium Theory? Why? b. Suppose instead that were ending the growth stage of the business cycle. What does this suggest for how the slope will differ from today's slope. Why

c. You're pretty pleased with yourself for your work in a&b. However, you worked with book values of assets, debt and income. What do you think about this approach and why?