If yields on Treasury securities were currently as follows:

TERM YIELD 6 months 1.0% 1 year 1.7% 2 years 2.1% 3 years 2.4% 4 years 2.7% 5 years 2.9% 10 years 3.5% 15 years 3.9% 20 years 4.0% 30 years 4.1%

a. Plot the yield curve. b. Explain this yield curve using the unbiased expectations theory and the liquidity preference theory.