The answer is C. stocks =)
Answer:
According to the unbiased expectations theory, the current rate for a two-year treasury security should be 0.98%.
Explanation:
Unbiased Expectations Theory help us predict future short-term interest rate by using current long-term interest rates.
T-bill rate = 0.33%
Expected one-year rate 12 months from now = 1.30%
1R2= [(1 + 0.0033)(1 + 0.013)]− 1
= 1.0098 - 1 = 0.98%
Answer:
The correct answer is letter "B": the AICPA.
Explanation:
The American Institute of Certified Public Accountants (<em>AICPA</em>) is the association representing accountants in the United States in charge of ruling practices regarding the accounting profession. Among its functions, we can identify setting the Standards for Tax Services (SSTSs) which is a standard with taxing purposes that all members of the AICPA must follow.