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4. You examine the following yield curve Maturity 1 2 3 5 10 30 YTM 2.2% 2.6% 2.9% 3.0% 3.15% 3.25% a. Calculate the slope
4. You examine the following yield curve Maturity 1 2 3 5 10 30 YTM 2.2% 2.6% 2.9% 3.0% 3.15% 3.25% a. Calculate the slope of the yield curve using conventional methods. b. Calculate the curvature of the yield curve using a 2/10/30 butterfly spread. c. If you suspected bond prices would decline over the next year for 10yr bonds relative to other maturities, what do expect will happen to the shape of the yield curve?
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