Question: Date 1 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr 10/3/2016 0.25

Date

1 Mo

3 Mo

6 Mo

1 Yr

2 Yr

3 Yr

5 Yr

7 Yr

10 Yr

20 Yr

30 Yr

10/3/2016

0.25

0.32

0.48

0.63

0.80

0.91

1.18

1.46

1.63

2.01

2.34

Based on the shape of the yield curve, what do you expect to happen to the short term yields in the future?

What will the yield on a 1-year bond be 1 year from now?

What will the yield on a 1-year bond be 2 years from now?

What will the yield on a 2-year bond be 1 year from now?

What will the yield on a 2-year bond be 3 years from now?

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