Assuming the pure expectations theory is correct, which of the following statements is correct?

a. if 2-year treasury bond rates exceed 1-year rates, then the market must expect interest rates to rise.
b. if both 2-year and 3-year treasury rates are 7%, then 5-year rates must also be 7%.
c. reinvestment rate risk is higher on long-term bonds, and interest rate (price) risk is higher on short-term bonds.
d. if 1-year rates are 6% and 2-year rates are 7%, then the market expects 1-year rates to be 6.5% in one year. e. interest rate (price) risk and reinvestment rate risk are relevant to investors in corporate bonds, but these concepts do not apply to treasury bonds.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

mauve company permits employees to occasionally use the copying machine for personal purposes

it's obviously d. it could be c though.

riley- $3

sean- $4

jake- $8

riley has the absolute advantage.