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Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three, and four

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Using the expectations hypothesis theory for the term structure of interest rates, determine the expected return for securities with maturities of two, three, and four years based on the following data (Input your answers as a percent rounded to 2 decimal places.) Interest Rate 1-year T-bill at beginning of year 1 1-year T-bill at beginning of year 2 1-year T-bill at beginning of year 3 70 1-year T-bill at beginning of year 4 20 50 100 Expected Return % 2-year security 3-year security 4-year security % % Problem 6-21 Level production and related financing effects (L06-3) Bombs Away Video Games Corporation has forecasted the following monthly sales: January $104,000 July $ 49,000 February 97,000 August 49,000 March 29,000 September 59,000 April 29,000 October 89,000 May 24,000 November 109,000 June 39,000 December 127.000 Total annual sales - $804,000 Bombs Away Video Games sells the popular Strafe and Capture video game. It sells for $5 per unit and costs $2 per unit to produce. A level production policy is followed. Each month's production is equal to annual sales (in units) divided by 12. Of each month's sales, 40 percent are for cash and 60 percent are on account. All accounts receivable are collected in the month after the sale is made. a. Construct a monthly production and inventory schedule in units. Beginning inventory in January is 29,000 units. Bombs Away Video Games Corporation Production and Inventory Schedule in Units Beginning Production Sales Inventory 29,000 Ending Inventory January February March April May June

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