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HWI The following yields on U.S. Treasury securities were taken from a financial publication: Rate 5.1% Term 6 months 1 year 2 years 3 years

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HWI The following yields on U.S. Treasury securities were taken from a financial publication: Rate 5.1% Term 6 months 1 year 2 years 3 years 4 years 5 years 10 years 20 years 30 years 5.6 5.7 5.8 6.0 6.1 65 63 1. Plot a yield curve based on these data. 2. Based on this yield curve, if you needed to borrow money for longer than 1 year, would it make sense for you to borr short term and renew the loan or borrow long term? Explain. 3. Calculate the 2 years interest rate 1 year from now, using the pure expectations theory 4. Calculate the 5 years interest rate 5 year from now, using the pure expectations theory

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