The yield to maturity yesterday on a bond that matures in March of 2021 was .43%. On the same day, a bond that matures in May of 2040 was 1.16%.

Group of answer choices

1.This is evidence against the pure expectations hypothesis

2. This is an example of the perfect sustainability of short term and long term bonds

3. If the pure expectations hypothesis were true, this is evidence that the market expects short term rates to fall

4. This is an example of a yield curve of the typical shape.