Suppose that the yield curve shows that the one-year bond yield is 2 percent, the two-year yield is 3 percent, and the three-year yield is 4 percent. assume that the risk premium on the one-year bond is zero, the risk premium on the two-year bond is 1 percent, and the risk premium on the three-year bond is 2 percent. a. what are the expected one-year interest rates next year and the following year? the expected one-year interest rate next year = 2 % the expected one-year interest rate the following year = 4 % b. if the risk premiums were all zero, as in the expectetions hypothesis, what would the slope of the yield curve be? the slope of the yield curve would be

Acompany is developing a new high­performance wax for cross country ski racing. in order to justify the price marketingwants, the wax needs to be very fast. specifically, the mean time to finish their standard test course should be less thanseconds for a former olympic champion. to test it, the champion will ski the course 8 times. the champion's times(selected at random) are 59.9 61.9 48.8 52.2 46.6 45.3 50.6 and 41.1 seconds to complete the test course. complete parts a and b below. a) should they market the wax? assume the assumptions and conditions for appropriate hypothesis testing are metfor the sample. assume=0.05. what are the null and alternative hypotheses? choose the correct answer below. b) suppose they decide not to market the wax after the test, but it turns out that the wax really does lower the champion'saverage time to less thanseconds. what kind of error have they made? explain the impact to the company of such anerror.