Which of the following statements is (are) true with respect to bond valuation?
I). Spot rates are equal to the yield to maturity of on-the-run coupon paying Treasury securities.
II). The arbitrage-free valuation approach discounts each cash flow of a bond using a different discount rate.
III). As the required yield to maturity increases, the discount on a zero-coupon bond will decrease.
IV). If the yield to maturity on a bond is greater than a bond's coupon rate, then the bond will trade below par.

The convexity adjustment for a callable bond with a duration of 5.5 and convexity of -38, when the interest shock is 250 basis points, is:

A company had sales of 23,085 for the just concluded year, with a gross margin of 45%. Its accounts receivables increased by 2,317 and inventory decreased by 894. On the basis of the direct statement of cash flows, what were the sales and COGS on cash basis?

Clifton Company leased a computer from Jan Corporation on January 1, 2000, for a 10-year period, the useful life of the asset. Equal rental payments of $5,000 are due on January 1 of each year. The first payment was made on January 1, 2000. The present value of the minimum lease payments over the lease term discounted at 10% was $33,795. The balance in Clifton's liability account (including accrued interest) at December 31, 2000, should be:

Discouraged workers