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Given the indicated maturities listed in the following table, assume the following yields for U.S. Treasury securities: Maturity (Years) Yield (%) 1 5.5 5 10

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Given the indicated maturities listed in the following table, assume the following yields for U.S. Treasury securities: Maturity (Years) Yield (%) 1 5.5 5 10 20 30 5.0 4.7 4.4 3.8 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. Tool tip: Mouse over the points on the graph to see their coordinates. INTEREST RATE (Percent) Yield Curve 5 10 15 20 25 30 MATURITY (Years) The graph's yield curve represents yield curve. Based on the yield curve shown, which of the following statements is true? Interest rates on short-term maturities are higher than rates on medium- and long-term maturities. If inflation in the future is expected to increase, the yield curve on U.S. Treasuries is likely to be downward sloping

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