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What is the shape of the yield curve given in the following term structure? What expectations are investors likely to have about future interest rates?

What is the shape of the yield curve given in the following term structure? What expectations are investors likely to have about future interest rates?image text in transcribed

What is the shape of the yield curve given in the following term structure? What expectations are investors likely to have about future interest rates Term 1 year 3 years 10 years 2 years 5 years 7 years 2.01 Rate (EAR, 4.15 2.39 2.76 3.34 3.74 What is the shape of the yield curve given the term structure? (Select the best choice below.) O A. The yield curve is a normal yield curve (increasing). O B. The yield curve is an inverted yield curve (decreasing). O C. The yield curve is a flat yield curve. o D. It is hard to tell because we are not given an EAR for every year. 20 years 4.96

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