1. Explain, why is there a different yield for a 10-year and 30-year bond (paragraph 2). 2. Explain paragraph 3 using the asset price model of bonds yield.

1 13 O 125% Article 1: Bond Yields Rise in Volatile Trading Day [1] U.S. government-bond yields whipsawed before settling higher Friday, swung by the president's positive Covid-19 test, a lackluster jobs report and hopes for further stimulus from lawmakers. [2] The yield on the benchmark 10-year Treasury note closed at 0.694%, according to Tradeweb, comparied with 0.677% on Thursday. The 30-year bond yield increased to 1.480%, from 1.454%. Bond Yields fall when prices rise. [3] Those moves reversed earlier declines that came after President Trump tested positive for Covid-19, adding more uncertainty into an election campaign that already has markets bracing for a November surge in volatility. The increase in yields surprised traders, who were grappling With data showing job creation slowing. Employers added 661,000 jobs in September, the Labor Department said, below economists' expectations of about 800,000. [4] Several analysts credited the reversal to comments by House Speaker Nancy Pelosi expressing confidence that lawmakers will reach a deal on additional economic stimulus measures. Questions (Each question carries 4 marks) ENG o Bi ere to search lagi