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4. Drawing a yield curve Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities: 1 5 10

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4. Drawing a yield curve Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities: 1 5 10 20 Maturity (Years) Yield (4) 30 5.5 2.0 3.1 3.8 4.6 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 ? 10 9 Yield Curve B 7 6 INTEREST RATE (Percent) 5 3 2 1 0 5 25 30 10 15 20 MATURITY (Years) The graph's yield curve represents yield curve. Based on the yield curve shown, which of the following statements is true? O Corporate bond yield curves are lower than US Treasury bond yield curves. O Interest rates on short-term maturities are lower than rates on long-term maturities

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