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Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities: Maturity (Years) Yield (%) 1 3.6 5 5.5
Given the indicated maturities listed in the following table, assume the following yields for US Treasury securities: Maturity (Years) Yield (%) 1 3.6 5 5.5 10 5.5 20 4.2 30 4.0 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 Curve INTEREST RATE (Percent) 5 25 30 10 15 20 MATURITY (Years) The graph's yield curve represents yield curve. Based on the yield curve shown, which of the following statements is true? A market with a yield curve as shown on the graph has higher rates on debt securities that mature within 10 to 30 years than those with maturities of less than 1 to 5 years. Interest rates on medium-term maturities are higher than rates on long- and short-term maturities
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