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There are three factors that can affect the shape of the Treasury yield curve (r,tP4 and MRP ) and five factors that can affect the

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There are three factors that can affect the shape of the Treasury yield curve (r,tP4 and MRP ) and five factors that can affect the shape of the corporate yield curve (r,P1,MRPt,DRP4 and Ly). The yield curve refiects the aggregation of the impacts from these factors. Suppose the real risk-free rate and inflation rate are expected to remain at their current levels throughout the foreseeable future: Consider alt factors that affect the yield curve. Then identify which of the foliowing shopes that the US Treasury yield curve can take. Check all that appiy. Inverted vie'd curve Upward-siloping yleld curve Downward-sloping yield curve Identify whether each of the following statements is true or false. A US Treasury yield curve is plotted in the followiog graph: A US Treasury yield ourve is plotted in the following greph: Bssed on an upward-sloping normal yield curve as shown, which of the following statements is correct? Pure expectations theory must be correct. There is a positive maturity nix premiums. If the pure expectations theory is correct, future short-term rates are expected to be highor than Inflation must be expected to increase in the funure

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