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$.$ Select the graph that correctly shows the yield curve associated with the data shown in the table.

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$.$ Which of the following graphs correctly shows the yield curve

associated with the data shown in the table? $($Select the best answer below.$)$

A$.$

Yield Curve of U$.$S$.$ Treasurv Securities

c$.$

Yield Curve of U$.$S$.$ Treasury Securities

B$.$

Yield Curve of U$.$S$.$ Treasurv Securities

Data Table :

U$.$S$.$ Treasury Security Time to maturity Yield

A :$1$ year $=12\mathrm{.}4$

B :$10$ years $=10\mathrm{.}9$

C :$6$ months $=12\mathrm{.}5$

D :$20$ years $=10\mathrm{.}2$

E :$5$ years $=11\mathrm{.}4$