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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
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 30 Maturity (Years) Yield (%) 2.0 3.1 3.8 4.6 5.5 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 8 7 INTEREST RATE (Percent) 5 3 2 1 0 0 10 25 30 10 15 20 MATURITY (Years) The graph's yield curve is referred to as yield curve. Based on the yield curve shown, which of the following statements is true? Corporate bond yield curves are lower than US Treasury bond yield curves. Interest rates on short-term maturities are lower than rates on long-term maturities. The graph's yield curve is referred to as yield curve. Based on the yield curve shown, which Corporate bond yield curves a humped statements is true? a flat US Treasury bond yield curves. an inverted lower than rates on long-term maturities. a normal Interest rates on short-term
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