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.

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 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