Pretend that the US Treasury zero-coupon yield curve given in this problem is the current one in the real world. How could a corporate decision maker use that fact to improve decision making? Discuss in detail the various economic, financial theory and concepts supporting your answer. Use text explanations, graphs and equations where appropriate. And be sure to label everything accurately.

Answer rating: 100% (QA)

The US Treasury yield curve is of tremendous importance both in concept and in practice From a conceptual perspective the yield curve determines the value that investors place today on nominal payment... View the full answer