Abond trader observes the following information: the treasury yield curve is downward sloping. empirical data indicate that a positive maturity risk premium applies to both treasury and corporate bonds. empirical data also indicate that there is no liquidity premium for treasury securities but that a positive liquidity premium is built into corporate bond yields. on the basis of this information, which of the following statements is most correct? a. a 10-year corporate bond must have a higher yield than a 5-year treasury bond.
b. a 10-year treasury bond must have a higher yield than a 10-year corporate bond.
c. a 5-year corporate bond must have a higher yield than a 10-year treasury bond.
d. the corporate yield curve must be flat.
e. since the treasury yield curve is downward sloping, the corporate yield curve must also be downward sloping.

Depreciation on the company's equipment for 2017 is computed to be $18,000.the prepaid insurance account had a $6,000 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of the company's insurance policies showed that $1,100 of unexpired insurance coverage remains. the office supplies account had a $700 debit balance on december 31, 2016; and $3,480 of office supplies were purchased during the year. the december 31, 2017, physical count showed $300 of supplies available. two-thirds of the work related to $15,000 of cash received in advance was performed this period. the prepaid insurance account had a $6,800 debit balance at december 31, 2017, before adjusting for the costs of any expired coverage. an analysis of insurance policies showed that $5,800 of coverage had expired. wage expenses of $3,200 have been incurred but are not paid as of december 31, 2017.