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pls give the exact answer for both questions ill rate up thanks What is the shape of the yield curve given in the following term
pls give the exact answer for both questions
ill rate up
thanks
What is the shape of the yield curve given in the following term structure? What expectations are investors likely to have about future interest rates? Term 1 year 3 years 5 years 10 years 2 years 2.42 7 years 3.79 20 years 4.95 Rate (EAR, %) 2.01 2.71 3.31 4.15 What is the shape of the yield curve given the term structure? (Select the best choice below.) A. The yield curve is a flat yield curve. B. The yield curve is a normal yield curve (increasing). C. The yield curve is an inverted yield curve (decreasing). D. It is hard to tell because we are not given an EAR for every year. What expectations are investors likely to have about future interest rates? (Select the best choice below.) A. The yield curve provides no clues as to future interest rate levels. B. Interest rates will likely stay the same in the future. C. Interest rates might rise in the future. D. Interest rates might decrease in the future. In 1975, interest rates were 7.85% and the rate of inflation was 12.3% in the United States. What was the real interest rate in 1975? How would the purchasing power of your savings have changed over the year? (Note: Be careful not to round any intermediate steps less than six decimal places.) What was the real interest rate in 1975? Real rate of interest in 1975 was %. (Round to two decimal places.) How would the purchasing power of your savings have changed over the year? The purchasing power over that year did the following: (Select the best choice below.) A. Increased by 3.96% B. Increased by 4.45% C. Declined by 3.96% D. Declined by 4.45%Step by Step Solution
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