Term structure of interest rates The following yield data for a number of highest-quality corporate bonds existed at each of the three points in time noted in the following table: a. On the same set of axes, draw the yield curve at each of the three given times Select the graph that correctly represents the yield curves associated with the data b. Label each curve in part a with its general shape downward-sloping, upward-sloping, flat). c. Describe the general interest rate expectation existing at each of the three times, assuming expectations theory holds d. Examine the data from 5 years ago. According to the expectations theory, what approximate retum did investors expect a 5-year bond to pay as of today? a. On the same set of axes, draw the yield curve at each of the three given times. Which graph correctly represents the yield curves? (Select the best answer below.) OA Q OB Q . 155 yrs ago 152 yrs ago 15 Today Syrs ago 20 20 20 od yrs ago Yield % Todaya 10 10 Yield % PU 10- 5 Today 5 15 yrs ago 5 yrs ago 10 20 30 Time to Maturity (years) 0 0 10 20 30 Time to Maturity years) 10 20 30 Time to Maturity years) (Click on the icon here in order to copy the contents of the data table below into a spreadsheet.) Yield 5 years ago 2 years ago Today Time to maturity (years) 1 3 5 10 15 20 30 7.2% 7.3 7.3 7.6 7.4 7.6 7.5 13.8% 12.0 11.4 10.1 9.9 9.7 9.7 7.5% 8.0 9.1 10.8 10.9 11.1 11.7