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1.What is a yield curve? What is the term structure of interest rates? 2.How the yield curve should look for a healthy economy? During financial

1.What is a yield curve? What is the term structure of interest rates?

2.How the yield curve should look for a healthy economy? During financial downturn?

3.What is expectations theory of the term structure of interest rates?

4.What is liquidity preference theory of the term structure of interest rates?

5.One-year and two--year spot rates are 4% and 5%, respectively. What is the implied 1-year forward rate 1 year from today?

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