a) Describe the current term structure for the Australian corporate bond market. Demonstrate the observed relationship graphically. Explain how the term structure has changed over the past five years and how this change reflects Australian financial conditions. b) Based on the term structure from part (a), discuss which of the term structure theories best describes what you observe.

COPR. YEILD INDEX MGQ
3M	5.233
1 Y	5.363
2 Y	5.546
3 Y	5.723
5 Y	6.083
10 Y	6.442
15 Y	6.4432
30 Y	6.607

Answer rating: 100% (QA)

a Term Structure of the Australian Corporate Bond Market The term structure of interest rates for the Australian corporate bond market describes the r... View the full answer