Yield curve. A firm wishing to evaluate interest rate behavior has gathered yield data on five U$.$S$.$ Treasury securities$,$ each having a different

maturity and all measured at the same point in time. The summarized data follow.

a$.$ Draw the yield curve associated with these data.

b$.$ Describe the resulting yield curve in part a$,$ and explain what it says about the direction of future interest rates under the expectations

theory.

a$.$ Draw the yield curve associated with these data.

To build a plot of the yield curve, first highlight the cells containing the Time to maturity $($years$)$ and the cells containing the Yield to

maturity, and then under the Insert and Charts select Scatter and Scatter with Straight Lines and Markers. Once the graph appears you can

move it$,$ format the axis scales and titles, and remove the legend and gridlines.