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An analyst produced the accompanying graph showing how a country's government bond yields depend on the amount of time left until the maturity of the

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An analyst produced the accompanying graph showing how a country's government bond yields depend on the amount of time left until the maturity of the bond. The analyst recommends "buying bonds with 3-month, 6-month, and 20-year maturities, since their yields are above the general trend." Complete parts a and b below. Click the icon to view the graph of a country's government bond yield. a) Draw a better graph of the data and state the improvement(s) that have been made. Choose the correct graph below. OA OB. Oc. OD. Q Yield (%) Years to maturity 25 20 15- 10- 5 Z Yield (%) mo 0- 456 Yield (%) 5 10 15 20 25 Years to maturity Years to maturity Yield (%) State the improvement(s) that have been made. Choose the correct answer below. O A. The improvement is that the horizontal scale has constant intervals. OB. The improvement is that the horizontal scale does not have constant intervals. OC. The improvement is that the vertical scale does not have constant intervals. OD. The improvement is that Yield (%) is on the horizontal scale. b) Using the graph from part a, do you agree with the analyst's recommendation? O A. The recommendation is invalid. Only the 3-month maturity yield is above the general trend. OB. Yes, the recommendation is valid. The 3-month, 6-month, and 20-year maturity yields are above the general trend. OC. The recommendation is invalid. Only the 20-year maturity yield is above the general trend. OD. The recommendation is invalid. There are no maturities that stand out above the general trend. X Government Bond Yields 6- 5- (%) pou 4 3 24 1- 3 mo 6 mo 1 yrs 2 yrs 3 yrs 5 yrs 7 yrs 10 yrs 20 yrs Maturity An analyst produced the accompanying graph showing how a country's government bond yields depend on the amount of time left until the maturity of the bond. The analyst recommends "buying bonds with 3-month, 6-month, and 20-year maturities, since their yields are above the general trend." Complete parts a and b below. Click the icon to view the graph of a country's government bond yield. a) Draw a better graph of the data and state the improvement(s) that have been made. Choose the correct graph below. OA OB. Oc. OD. Q Yield (%) Years to maturity 25 20 15- 10- 5 Z Yield (%) mo 0- 456 Yield (%) 5 10 15 20 25 Years to maturity Years to maturity Yield (%) State the improvement(s) that have been made. Choose the correct answer below. O A. The improvement is that the horizontal scale has constant intervals. OB. The improvement is that the horizontal scale does not have constant intervals. OC. The improvement is that the vertical scale does not have constant intervals. OD. The improvement is that Yield (%) is on the horizontal scale. b) Using the graph from part a, do you agree with the analyst's recommendation? O A. The recommendation is invalid. Only the 3-month maturity yield is above the general trend. OB. Yes, the recommendation is valid. The 3-month, 6-month, and 20-year maturity yields are above the general trend. OC. The recommendation is invalid. Only the 20-year maturity yield is above the general trend. OD. The recommendation is invalid. There are no maturities that stand out above the general trend. X Government Bond Yields 6- 5- (%) pou 4 3 24 1- 3 mo 6 mo 1 yrs 2 yrs 3 yrs 5 yrs 7 yrs 10 yrs 20 yrs Maturity

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