Question: 1. The short rate at time t is given by rt=r+ekt(r0r). The yield curve is given by (1+yt)t=E[(1+r0)(1+rt1)]. Let r=0.03 and k=0.1. Plot the yield

1. The short rate at time t is given by rt=r+ekt(r0r).

1. The short rate at time t is given by rt=r+ekt(r0r). The yield curve is given by (1+yt)t=E[(1+r0)(1+rt1)]. Let r=0.03 and k=0.1. Plot the yield curve for r0=1.01,r0=.04, and r0=r

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