Draw the yield curve described as follows: Interest rates: 3% in year 1, 2.75% in year 2, 2.5% in year 3, and 3% in year 4 Term premiums: 1% for a one-year bond, rising by 0.25% for each additional year of maturity 5 4 3 2 1 4 1 2 3 5 Mark the axes above clearly indicating what the axes measure and what the exact value of the important points are. The yield curve above suggests which of the following is the predominant short to medium-term economic outlook among market participants? (circle the one you think is most appropriate) strong recovery, weak recovery, stable growth, recession LO