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Assume that ylelds on U.S. Treasury securities were as follows: A. Select a correct yelo curve based ien these data. d. Eased on this veld

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Assume that ylelds on U.S. Treasury securities were as follows: A. Select a correct yelo curve based ien these data. d. Eased on this veld curve, if you needed to borrow money for longer than I yeat, would i make stnse foc wou to borrow short term and renew the ioan or borrew tang term? Explain. I. Even though the becroner reinvests in increasing short-termi rates, those rates are stin beow the long-telm rate, put what makes the hugher soog-term rato Attractive is the roliover risk that may posubly ectur if the whorttemo rales go oven higher than the long-term rate fand that could be for a long timel). 17. Genernily, it would make sense to borrow short-term because each year the loan is renewed the interest pate would be higher 111. Geperally, it would make senge to berrow shart-term because bach veir the loan is reneweg the interest rate would be lower IV. Generaily, x would make seme to dortow fong term becsuse each vear the loph is renewed thie antertit rate woild be lower. Q. Daferences is yiles that may exist between the short-term and iong-term cannot be waplained by the forter of supply and ofrriand in each itarkiet Assume that ylelds on U.S. Treasury securities were as follows: A. Select a correct yelo curve based ien these data. d. Eased on this veld curve, if you needed to borrow money for longer than I yeat, would i make stnse foc wou to borrow short term and renew the ioan or borrew tang term? Explain. I. Even though the becroner reinvests in increasing short-termi rates, those rates are stin beow the long-telm rate, put what makes the hugher soog-term rato Attractive is the roliover risk that may posubly ectur if the whorttemo rales go oven higher than the long-term rate fand that could be for a long timel). 17. Genernily, it would make sense to borrow short-term because each year the loan is renewed the interest pate would be higher 111. Geperally, it would make senge to berrow shart-term because bach veir the loan is reneweg the interest rate would be lower IV. Generaily, x would make seme to dortow fong term becsuse each vear the loph is renewed thie antertit rate woild be lower. Q. Daferences is yiles that may exist between the short-term and iong-term cannot be waplained by the forter of supply and ofrriand in each itarkiet

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