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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
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 (%) 5.5 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. ? 10 9 Yield Curve 8 7 INTEREST RATE (Percent) 2 1 0 0 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? 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 US Treasuries is likely to be downward sloping
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