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W to analyze interest offered on cfferent bonds from different issues to decide which ones to select for financial investment. The below graph ilustrates the

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W to analyze interest offered on cfferent bonds from different issues to decide which ones to select for financial investment. The below graph ilustrates the yield curve you have drawn for bonds with different maturities issued by three different in Butna bond, AA rated bond, and treasury bond Questions reste 121 101 Rated on AA Rated Bond Treasury Bond 10 Years to Maturity Analyze the difference between these three curves. In particular, in your opinion: AJ Why the three curves are upward sloping? Justify clearly your answer. [2] B) Why the three curves are in this order (BBB-rated bond on top, then AA-rated bond, and finally treasury bond down]? Justify clearly your answer. 12)

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