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1 5 10 20 Maturity (Years) Yield (%) 30 3.8 5.5 5.0 4.7 4.4 On the following graph, plot the yield curve Implied by these

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1 5 10 20 Maturity (Years) Yield (%) 30 3.8 5.5 5.0 4.7 4.4 On the following graph, plot the yield curve Implied by these interest rates. Place a blue point (circle symbol) at each maturity and interest rate in the table, and the yield curve will draw itself Vield Curve INTEREST RATE Pro) 10 MATURITY Yield Curve 7 0 INTEREST RATE (Percent) 5 3 2 a flat 1 a humped 5 30 10 MATURIT an upward-sloping a downward sloping The graph's yield curve represents yield curve Based on the yield curve shown, which of the following statements is true? Interest rates on short-term maturities are higher than rates on medium- and long-term maturities. If inflation in the future is expected to increase, the yield curve on US Treasures is likely to be downward sloping. Grade It Now Save & Continue

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