The following yields on U.S. Treasury securities were published in The Wall Street Journal on January 28,

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The following yields on U.S. Treasury securities were published in The Wall Street Journal on January 28, 2011:
Term Rate
6 months........................0.17%
1 year.................................0.26
2 years...............................0.60
3 years...............................1.01
5 years...............................1.98
7 years...............................2.72
10 years.............................3.40
20 years.............................4.29
30 years.............................4.57
Plot a yield curve based on these data. Discuss how each term structure theory can explain the shape of the yield curve you plot.
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Principles of Finance

ISBN: 978-1111527365

5th edition

Authors: Scott Besley, Eugene F. Brigham

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