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a . The yield curve from February 2 0 0 7 slopes downward, meaning interest rates and maturity terms are inversely related. b . The
a The yield curve from February slopes downward, meaning interest rates and maturity terms are inversely related.
b The yield curve from January is characteristic of a normal yield curve, reflecting that the shorter the term, the higher the risk, and then interest rates decrease over time.
c The yield curve from February is inverted as investors anticipated that inflation was likely to cause future shortterm rates to be lower than current shortterm rates.
d The yield curve from January slopes upward, meaning interest rates and maturity terms are directly related.Maturity
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