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please answer number 6 & 7 6. If the yield curve is positively sloping, which of the below rate sequences would you expect to see?
please answer number 6 & 7
6. If the yield curve is positively sloping, which of the below rate sequences would you expect to see? a. 1 year note =2.0%;2-year note =3.0%;3-year note =4.0%;4-year note =5.0% b. 1 year note =2.0%;2-year note =3.0%;3-year note =3.0%;4-year note =2.5% c. 1 year note =4.0%;2-year note =3.0%;3-year note =2.0%;4-year note =1.0% d. 1 year note =2.0%;2-year note =2.0%;3-year note =2.0%;4-year note =2.0% e. None of the above 7. If the yield curve is negatively sloping, which of the below rate sequences would you expect to see? a. 1 year note =2.0%;2-year note =3.0%;3-year note =4.0%;4-year note =5.0% b. 1 year note =2.0%;2-year note =3.0%;3-year note =3.0%;4-year note =2.5% c. 1 year note =4.0%;2-year note =3.0%;3-year note =2.0%;4-year note =1.0% d. 1 year note =2.0%;2-year note =2.0%;3-year note =2.0%;4-year note =2.0% e. None of the above Step by Step Solution
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