Government economists have forecast one-year T-bill rates fo…

Government economists have forecast one-year T-bill rates for the following five years as follows: Year 1-Year Rate 1 5.50% 2 5.00% 3 4.50% 4 4.00% 5 3.50% The liquidity premium is 0.25% for the next three years and 0.50% thereafter. Would you be willing to purchase a 4-year T-note at a 5.25% interest rate using the liquidity premium theory of rates?

Mrs. C is an 85-year-old woman living with her daughter and…

Mrs. C is an 85-year-old woman living with her daughter and son-in-law, who both work full time. Mrs. C is bored during the day and needs assistance to take her medications and to remember time. She walks with a walker. Which of the following living arrangements would you recommend at this time?