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1. (25 points) It is now November 2020 and the following yields prevail: Treasury Security Spot Yield (%) Maturity Date As of November 2020 November

1. (25 points) It is now November 2020 and the following yields prevail: Treasury Security Spot Yield (%) Maturity Date As of November 2020 November 2021 November 2022 November 2023 November 2024 November 2025 5.90% 5.30% 4.70% 4.25% 3.75% A. Calculate the 1-year forward rate as of November 2024 (answer in percent with 2 decimal places). B. Calculate the 1-year forward rate as of November 2023 (answer in percent with 2 decimal places). C. What is the shape of the yield curve and why

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