There are three factors that can affect the shape of the Treasury yild carve (.P and MRP) and five factors that can affect the shape of the corporate yield curve ( P. MRP, DRP, and LPS- The yidld curve refects the aggregaton of the Impacts from thee factors ppose the real risk-free rate and inflation rate are espected to remain at their current levels throughost the foresseable future. Consider all fectors that affect the yield curve. Then identify which of the follawing shapes that the U.S. Treasury yield curve can take. Oheck all that apply Downward-sloping yield curve upward-sloping yield urve D Inverted yield curve Identify whether each of the folloning statements is true or fake. TrueFalse If inflation is expected to decresse in thefuture and the real rate is expectred to remain steady, then the Treasury vild curve is downwand sloping (Assurne MRP-0.) The defoult risk on Walmart's short-tenn debt be higher then the det risk on itsO long-term debt. The yield curve for a 888-rated corporste bond is esxpectad to be above the US Treasury bond yield curve. Yield curves of highly liquid asets wi be tower than yenld curves of etetively iquie 0 assets. AUS. T sury yield curveis plotted ite ang gngh INTEREST ATE EARS TO MATURITY Basnd on an upward-sioping nonmal yiald curve as shown, wwich of the following stacements is cermect? O I the pure expectations theory is comect, future short-term rates are expectnd to be higher than current short-term rates. O There is a positve matuny iskprmum O Pure expectatiens theary mus be comect O Iiflation must be expected toincreasein the future