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Drawing a yield curve Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities: Maturity (Years) 1 5

image text in transcribedimage text in transcribedDrawing a yield curve

Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities:

Maturity (Years) 1 5 10 20 30
Yield (%) 2.0 3.1 3.8 4.6 5.5

On the following graph, plot the yield curve implied by these interest rates. Place a blue point (circle symbol) at each maturity and interest rate in the table, and the yield curve will draw itself.

Yield Curve051015202530109876543210INTEREST RATE (Percent)MATURITY (Years)

The graphs yield curve representsan upward-sloping yield curve.

Based on the yield curve shown, which of the following statements is true?

Corporate bond yield curves are lower than US Treasury bond yield curves.

Interest rates on short-term maturities are lower than rates on long-term maturities.

PLEASE DRAW THE GRAPH!

UIVCILIC LUCULLU TULUIILILO II SLLUT LIICIUNUVVILTY LUDIC, UDIUL LIIC TUHUVITY YILIUS IULUJII CUSUI Y SLUTILICU. Maturity (Years) Yield (%) 1 2.0 5 3.1 10 3.8 20 4.6 30 5.5 On the following graph, plot the yield curve implied by these interest rates. Place a blue point (circle symbol) at each maturity and interest rate in the table, and the yield curve will draw itself. O Yield Curve INTEREST RATE (Percent) o 5 - 25 30 10 15 20 MATURITY (Years) The graph's yield curve represents an upward-sloping yield curve. Based on the yield curve shown, which of the following statements is true? O Corporate bond yield curves are lower than US Treasury bond yield curves. Interest rates on short-term maturities are lower than rates on long-term maturities. UIVCILIC LUCULLU TULUIILILO II SLLUT LIICIUNUVVILTY LUDIC, UDIUL LIIC TUHUVITY YILIUS IULUJII CUSUI Y SLUTILICU. Maturity (Years) Yield (%) 1 2.0 5 3.1 10 3.8 20 4.6 30 5.5 On the following graph, plot the yield curve implied by these interest rates. Place a blue point (circle symbol) at each maturity and interest rate in the table, and the yield curve will draw itself. O Yield Curve INTEREST RATE (Percent) o 5 - 25 30 10 15 20 MATURITY (Years) The graph's yield curve represents an upward-sloping yield curve. Based on the yield curve shown, which of the following statements is true? O Corporate bond yield curves are lower than US Treasury bond yield curves. Interest rates on short-term maturities are lower than rates on long-term maturities

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