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Years to Maturity 1 2 3 5 7 10 20 30 Yield To Maturity 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00% Based on the

Years to Maturity 1 2 3 5 7 10 20 30

Yield To Maturity 2.00% 3.00% 4.00% 5.00% 6.00% 7.00% 8.00% 9.00%

Based on the data in this chart, the yield curve now is:

A. Inverted

B. Normal

C. Flat

D. Impossible because long term yields are always lower than short-term yields

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