A.Using the information above, Draw the shape of the German spot yield curve (does not need to be illustrated to scale). Describe the shape of the spot yield curve and its relationship with forward curve using the terminology covered in this unit.[6 marks]

.B . Explain the term structure of the yield curve in part A using the expectations theory, and the market segmentation theory, remembering to contrast the underlying assumptions of the two theories.

[8 marks]