3. Explain what is meant by the term structure of interest rates. Explain the theoretical basis of an upward-sloping yield curve. Explain the economic circumstances under which you would expect to see an inverted yield curve. Define "real" rate of interest. Over the past several years, fairly wide yield spreads between AAA-rated corporates and Treasuries have occasionally prevailed. Discuss the possible reasons for this. 4. An investor in the 28 percent tax bracket is trying to decide which of two bonds to purchase. One is a corporate bond carrying an 8 percent coupon and selling at par. The other is a municipal bond with a 51/2 percent coupon, and it, too, sells at par. Assuming all other relevant factors are equal, which bond should the investor select