Figure 5.7 shows a number of yield curves at various points in time. Go to www.treasury.gov, and in the “Resource Center” at the top of the page click on “Data and Charts Center.” Find the Treasury yield curve. Does the current yield curve fall above or below the most recent one listed in Figure 5.7? Is the current yield curve flatter or steeper than the most recent one reported in Figure 5.7?

Figure 5.7

Interest Rate (%) 16 14 12 10 8 6 t 10 O L T 2 3 4 LO 25 January 15, 1981 March 28, 1985 May 16, 1980 March 3, 1997 May 17, 2016 20 10 15 Terms to Maturity (Years)