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Imagine that the following yields currently hold for U.S. government bonds: 1 year bond, 5.75%, 2 year bond 5.25%, 5 year bond 5%, 10 year
Imagine that the following yields currently hold for U.S. government bonds: 1 year bond, 5.75%, 2 year bond 5.25%, 5 year bond 5%, 10 year bond 4.5%, 30 year bond 4.25%. This situation is:
A) An upwardly sloping yield curve
B) an inverted yield curve
C) A flat yield curve
D) An elliptically shaped yield curve
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