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The yields for Treasuries with differing maturities on a recent day were as shown in the following table a. Select the graph that represents the

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The yields for Treasuries with differing maturities on a recent day were as shown in the following table a. Select the graph that represents the yield curve for this date b. If the expectations hypothesis is true, approximately (ignoring compounding) what rate of return do investors expect a 5 year Treasury note to pay 5 years from now? c. If the expectations hypothesis is true, approximately (ignoring compounding) what rate of return do investors expect a 1-year Treasury security to pay starting 2 years from now? d. Is it possible that even though the yield curve slopes up in this problem, investors do not expect rising interest rates? Explain b. If the expectations hypothesis is true, the approximate rate of return investors expect a 5-year Treasury note to pay 5 years from now is %. (Round to two decimal places. ) c. If the expectations hypothesis is true, the approximate rate of return investors expect a 1-year Treasury security to pay starting 2 years from now is % (Round to two decimal places.) d. Even though the yield curve slopes up in this problem what else besides the expectations theory might cause the upward-sloping yield curve? (Choose all that apply) A. Because longer-term debt has lower liquidity, the long-term interest rates tend to be higher than the short-term rates B. If there is less demand for funds at longer maturities, the long-term interest rates tend to be higher than the short-term rates C. Because longer-term debt has higher liquidity, the long-term interest rates tend to be higher than the short term rates D. If there is an inadequate supply of funds at longer maturities, the long-term interest rates tend to be higher than the short-term rates che icon located on the top-right corner of the data table below antents into a spreadsheet) Maturity 3 months 6 months 2 years 3 years 5 years 10 years 30 years Yield 1.52% 1.55 2.44 3.08 3.34 4.09 4.91 Print Done

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