8) 10 pts. Look at the following sets of yields and interest rates. Each column gives a hypothetical set of interest rates and yields that might prevail on a certain day. Only one of the columns could exist in reality - in all of the other columns, there is something about the interest rates which is not consistent with what you have learned. Which column - a), b), c), d) or e) - is the one that could exist in reality? Loan or bond Expected value of average overnight rate between today and one year from today Expected value of average overnight rate between today and five years from today U.S. Treasury bond maturing in one year U.S. Treasury bond maturing in five years Ford Motor Co. bond maturing in five years Loan to Ford Motor Co. due in five years Which is the column that could exist in reality? Interest rate or yield, in percent c) 02 a) b) d) e) 2 2 2 2 2 3 3 3 3 3 2345 234+ 4 4 3345 3 4 3567 3556 5 6 5 5 6 7 Explain why column b) could not exist in reality: