Suppose the term structure of interest rates is shown below Term 1 year 2 years 3 years 5 years 10 years 20 years (EAR%) 5.00% 4.80% 4.60% 4.50% 4.25% 4.15% What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?

Inverted; Higher

Cannot determine from the information provided Normal;

Lower Normal;

Higher Inverted;

Lower