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The chart below shows the US Treasury Yield Curve as of December 16, 2021 (see below). 2 Mo 5 Yr 7 Yr 30 Yr Date

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The chart below shows the US Treasury Yield Curve as of December 16, 2021 (see below). 2 Mo 5 Yr 7 Yr 30 Yr Date 12/16/2021 1 Mo 1 0.04% 3 Mo 0.05% 6 Mo 0.13% 1 Yr 0.26% 2 Yr 0.64% 3 Yr 0.92% 10 Yr 1.44% 20 Yr 1.91% 0.06% 1.19% 1.36% 1.87% Based on the Treasury Yield Curve shown above, answer the following two questions: A) (2pts) What unusual feature presents itself in the curve? Please be specific. B) (8 pts) Using the liquidity premium theory, what is your forecast of the 10-year rate, 10 years from today? Assume the the 10-year liquidity premium is 0.30% and that the 20-year liquidity premium is 0.70%

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