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A) In the two figures above one curve shows the yield curve for U.S Treasury Securities and the other shows the yield curve for single

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A) In the two figures above one curve shows the yield curve for U.S Treasury Securities and the other shows the yield curve for single A corporate bonds.

options:

Curve A is the yield curve for U.S Treasury bonds and Curve B is the yield curve for single A corporate bonds.

Curve A is the yield curve for single A corporate bonds and Curve B is the yield curve for U.S Treasury bonds.

B) In the two figures above showing a treasury bond curve and a corporate bond curve, one pair of curves is typical, the other pair of curves has never been observed.

options:

a. The commonly observed pair of curves is shown in figure on the left.

b. The commonly observed pair of curves is shown in figure on the right.

C) When people expect interest rates to fall, the yield curve moves toward a steeper upward slope.

options:

True
False
Two Yield Curves

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