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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 (%) 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.

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

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

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

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