FINANCE 623 - SECTION 32 WEEK 3 ASSIGNMENT UNDERSTANDING YIELD CURVES Please refer to Slides 4143, and Textbook Chapter 7 , Section 7.7 Determinants of Bond Yields Instructions: 1. (10) Explain what a yield curve is. 2. (40) Look at the 4 yield curves on the following page. For each yield curve, explain what type of yield curve it is (normal, flat, inverted, humped). For each type, explain why it has the shape that it does. 3. (25) What does the Government of Canada yield curve look like right now? a. Why does it have the shape that it does? b. What is your expectation for how the curve may change in the next 2-3 years? How did you arrive at your conclusion? (This is your opportunity to demonstrate critical thinking skills. I'm looking for your opinion based on some of your research, not someone else's) (You can include a graphic to assist with your explanation, but please remember to cite your source.) 4. (25) What does the yield curve in your home country look like right now? a. Why does it have the shape that it does? b. What is your expectation for how the curve may change in the next 2-3 years? How did you arrive at your conclusion? (This is your opportunity to demonstrate critical thinking skills. I'm looking for your opinion, not someone else's) (You can include a graphic to assist with your explanation, but please remember to cite your source.) Please submit your responses in a single Word document. This activity is due by 11:59PM Pacific, Thursday, July 27, 2023 FINANCE 623 - SECTION 32 WEEK 3 ASSIGNMENT UNDERSTANDING YIELD CURVES Please refer to Slides 4143, and Textbook Chapter 7 , Section 7.7 Determinants of Bond Yields Instructions: 1. (10) Explain what a yield curve is. 2. (40) Look at the 4 yield curves on the following page. For each yield curve, explain what type of yield curve it is (normal, flat, inverted, humped). For each type, explain why it has the shape that it does. 3. (25) What does the Government of Canada yield curve look like right now? a. Why does it have the shape that it does? b. What is your expectation for how the curve may change in the next 2-3 years? How did you arrive at your conclusion? (This is your opportunity to demonstrate critical thinking skills. I'm looking for your opinion based on some of your research, not someone else's) (You can include a graphic to assist with your explanation, but please remember to cite your source.) 4. (25) What does the yield curve in your home country look like right now? a. Why does it have the shape that it does? b. What is your expectation for how the curve may change in the next 2-3 years? How did you arrive at your conclusion? (This is your opportunity to demonstrate critical thinking skills. I'm looking for your opinion, not someone else's) (You can include a graphic to assist with your explanation, but please remember to cite your source.) Please submit your responses in a single Word document. This activity is due by 11:59PM Pacific, Thursday, July 27, 2023