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14a. Draw a yield curve based on the following bond yields: (Just draw it by hand, you do not need to submit the drawing. You

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14a. Draw a yield curve based on the following bond yields: (Just draw it by hand, you do not need to submit the drawing. You use the drawing you made to answer the question below.) 3-Month Treasury Bill = 3.5% 1-Year Treasury Bill = 4.0% 2-Year Treasury Note 4.2% 5-Year Treasury Note - 4.7% 10-Year Treasury Note 5.0% 20-Year Treasury Bond = 5.1% 30-Year Treasury Bond = 5.2% 14b. Draw a yield curve based on the following bond yields: (Just draw it by hand, you do not need to submit the drawing. You use the drawing to answer the question below.) 3-Month Treasury Bill -> 6.5% 1-Year Treasury Bill -> 7.0% 2-Year Treasury Note 7.0% 5-Year Treasury Note - 6.2% 10-Year Treasury Note 6.0% 20-Year Treasury Bond = 5.7% 30-Year Treasury Bond = 5.7%14d. What are the different yield curves in Exercise 14a and Exercise 14b telling us about inflation expectations in each situation? Which yield curve (a or b above), might indicate a possible recession

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