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QUESTION 1 (THE INTEREST RATES) You are a senior financial analyst and have been asked to analyse recent developments in the Euro era and the

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QUESTION 1 (THE INTEREST RATES) You are a senior financial analyst and have been asked to analyse recent developments in the Euro era and the U.S markets and advise the top management on the economic conditions in both markets. You have collected data on the euro area yields of the central government bonds and the U.S. treasury bond yields. For this purpose, you have downloaded the following data from the European Central Bank and the U.S Federal Reserve Bank on 23rd April 2021 (Mo = month, Yr = Year): 23/04/2021 Euro area Central Government Bond Yield Rates Time to Maturity U.S. Treasury Bond Yield Rates 0.08% 0.10% 0.11% 0.12% 0.14% 0.20% 1 Mo 3 6 Mo 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr -0.50% -0.62% -0.65% -0.70% -0.74% -0.74% -0.72% -0.63% -0.51% -0.17% -0.05% 0.27% 0.46% 0.67% 1.19% 1.40% REQUIRED: a) Considering both yield rates on 23rd April 2021, depict the yield curves charts and describe the implied market outlook in the Euro area and the U.S. market to the top management QUESTION 1 (THE INTEREST RATES) You are a senior financial analyst and have been asked to analyse recent developments in the Euro era and the U.S markets and advise the top management on the economic conditions in both markets. You have collected data on the euro area yields of the central government bonds and the U.S. treasury bond yields. For this purpose, you have downloaded the following data from the European Central Bank and the U.S Federal Reserve Bank on 23rd April 2021 (Mo = month, Yr = Year): 23/04/2021 Euro area Central Government Bond Yield Rates Time to Maturity U.S. Treasury Bond Yield Rates 0.08% 0.10% 0.11% 0.12% 0.14% 0.20% 1 Mo 3 6 Mo 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr -0.50% -0.62% -0.65% -0.70% -0.74% -0.74% -0.72% -0.63% -0.51% -0.17% -0.05% 0.27% 0.46% 0.67% 1.19% 1.40% REQUIRED: a) Considering both yield rates on 23rd April 2021, depict the yield curves charts and describe the implied market outlook in the Euro area and the U.S. market to the top management

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