Please briefly comment on the shape of the two yield curves. First, what does a yield curve show? For example, on which of the two day (08/19/2004 or 09/19/2016) the yield curve is steeper? Also, suppose that an investor can borrow at the short-term rate and lend at the rate of the long-end, which of the two yield curves is more favorable to him/her? Please briefly explain why. Green - US Treasury curve 09/19/16 Orange - US Treasury curve 08/19/2004

LOF moIe IeatureS. US Treasury Actives Curve X-Axis Tenor Specific HINel Actions 98) Table Ex port settings Graph Curves Y-Axis Ask YTM Currency NonePCS 8/19/04 9/19/16 Relative Last 1D 1W Modify Curves& Relative Value 300) Edit Panel 301) Expand Panel 959 SPA 21:18 CBK: Update - wichita State SHOCKERS 46 , Jacksonville State 958 SPA 21:18 CBK Update- DePaul BLUE DEMONS 61, Chicago State COUGARS 37 957 SPA 21 18 CBK: UpdateTexas Tech RED RAIDERS 76, Northwestern State Which sector has the biggest changes in short interest? APPS BLACK APPS Running as C15. Run GC for more features US Treasury Actives Curve X-Axis Tenor Specific 08/19704 tt Actions 98) Table Export Settings YTM Y-Axis Ask | Currency None PCS Cu 09/19/16 t Relative Last 1D 1W Modify