Compare the segmented market and the preferred habitat term structure theories. Provide a deta discussion. (10 Mar! You observe the following yield curve for Treasury securities: Maturity 1 year 2 years 3 years 4 years 5 years Yield 2.5% 3.8% 4.0% 4.3% 4.7% Assume that the pure expectations hypothesis holds. What does the market expect will be the yield on 3-year securities, 2 years from today? (10 Marks) Question 3 Discuss reasons why a swap curve may not be as useful as a Treasury yield curve in determining benchmarks. Is there, in your opinion, in some countries any advantage of using the swap curve as a benchmark for interest rates relative to a government bond yield? W