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.......... 5 Marks Question 4: Term Structure of Interest Rates ..... Ulimwengu, a country in Asia Pacific has had a downward slopping yield curve over

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.......... 5 Marks Question 4: Term Structure of Interest Rates ..... Ulimwengu, a country in Asia Pacific has had a downward slopping yield curve over a period of eleven (11) years. (i) You have been asked to generate such a yield curve over the same period. Explain the meaning of the curve. (3 Marks) (ii) Explain any two term structure theories of interest rate. (2 Marks)

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