Choose the correct graph.

The correct graph is $|.$

A

B$.$

C$.$

D$.$

e$.$ Which part of the yield curve $($the left side or right side$)$ is likely to be most volatile over time?

Short$-$term rates are

$]$ volatile than longer$-$term rates; therefore, the

$|$ side of the yield curve would be most volatile over time.

f$.$ Using the Treasury yield information in part c$,$ calculate the following rates using geometric averages $($round your answers to three decimal places$)$:

The $1-$year rate, $1$ year from now

$\%$

The $5-$year rate, $5$ years from now

$\%$

The $10-$year rate, $10$ years from now

The $10-$year rate, $20$ years from now