Answer the following questions using the attached picture:

1) Explain what your graph is showing. What has happened to Treasury rates over the past ten years? Are rates higher or lower than they were five years ago and ten years ago? How much have they changed? Are these all normally shaped yield curves? If not, what does that tell you?

2) Why do you think the yield curves have changed over the over the past decade? What has happened in the US economy or with Federal Reserve activity to cause the changes in US Treasury yields over the last 10 years?

3) If 10 years ago, you purchased and held a large portfolio of 30 year US treasury bonds, would you be better or worse off today and Why? Do you think the value of the portfolio would have increased or decreased from ten years ago and Why? Would you recommend a similar bond purchase today to be held for another ten years? Why or Why not?

Citrix Viewer View Devices 4/) 43% D' Mon Nov 6 12:52:27 AM Q +E FACTSET.Q Learning Portal Todays Top News Markets Quotes ChartingEconomics Industry Filings screening Portfolio Ownership Graph Al dentrters CHARTS United States Treasury Yield Curve PLOT OPTIONS 5.0 11/03/2017 - Yield11/03/2016 - Yield 11/02/2012-Yield 11/02/2007-Yield - 4.5 Curve 1: Previou8 Clo86 4.0 Curve 3: Five Years Ago + Curve 3.5 + Spread 3.0 2.5 2.0 1.5 0.5 0.0 1 3M 6M 1Y 2Y 3Y 5Y TY 10Y 30Y CHART LABELS Price valuation 6