Dropdown options for the 1st option is:

downward sloping, humped, upward sloping, or flat

Dropdown options for the 2nd option is:

lower in the long term, higher in the long term, higher in the intermediate-term, or the same in the long term

Yield curve A firm wishing to evaluate interest rate behavior has gathered yield data on five U.S. Treasury securities, each having a different maturity and all measured at the same point in time. The summarized data follow: a. Select the graph that correctly shows the yield curve associated with the data shown in the table. b. Describe the resulting yield curve in part a, and explain what it says about the direction of future interest rates under the expectations theory. a. Which of the following graphs correctly shows the yield curve associated with the data shown in the table? (Select the best answer below.) OA. OB. Yield Curve of U.S. Treasury Securities Yield Curve of U.S. Treasury Securities Yield (%) Yield (%) 5 10 15 Time to Maturity (years) 20 * 10 15 Time to Maturity (years) 20 OC. OD Yield Curve of U.S. Treasury Securities Yield Curve of U.S. Treasury Securities 0 0 O O 5 O Yield (%) Yield (%) 10 15 Time to Maturity (years) 20 Time to Maturity (years) b. Describe the resulting yield curve in part a, and explain the general expectations embodied in it. (Select from the drop-down menus.) The yield curve is 7. indicating that interest rates are expected to be i Data Table in order to copy the contents of the data table below (Click on the icon here into a spreadsheet.) U.S. Treasury Security Time to maturity 1 year 10 years 6 months 20 years 5 years Yield 9.4% 8.1% 9.9% 7.5% 8.3% Click to select your answer. Print Done