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5. Drawing a yield curve Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities: Maturity (Years) Yield

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5. Drawing a yield curve Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities: Maturity (Years) Yield (%) 1 5 10 20 30 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. Tool tip: Mouse over the points on the graph to see their coordinates. INTEREST RATE (Percent) Yield Curve 0 5 10 15 20 25 30 MATURITY (Years) Clear All The graph's yield curve represents yield curve. Based on the yield curve shown, which of the following statements is true? Interest rates on short-term maturities are lower than rates on long-term maturities. Corporate bond yield curves are lower than US Treasury bond yield curves

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