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Given the indicated maturities listed in the following table, assume the following yields for U.S. Treasury securities: Maturity (Years) 1 5 10 20 30 Yield
Given the indicated maturities listed in the following table, assume the following yields for U.S. 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 Tool tip: Mouse over the points on the graph to see their coordinates INTEREST RATE [Percent] 10 Yield Curve 10 15 20 25 30 MATURITY (Years) Clear A The graph's yield curve represents yield curve Based on the yield curve shown, which of the following statements is true? O Interest rates on short-term maturities are lower than rates on long-term maturities O Corporate bond yield curves are lower than U.S. Treasury bond yield curves
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