Question: Given the following Treasury bond yield information, construct a graph of the yield curve. Maturity Yield 1 year 5.42 % 2 years 5.52 3 years
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Given the following Treasury bond yield information, construct a graph of the yield curve.
Maturity Yield 1 year 5.42 % 2 years 5.52 3 years 5.69 4 years 5.74 5 years 5.68 10 years 5.77 20 years 6.35 30 years 5.94 Choose the correct graph.
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A. Yield Curve B. Yield Curve 8% 8% 7% 7% 6% 6% 5% 5% Interest Rate 4% Interest Rate 4% 3% 3% 2% 2% 1% 1% 0% 0% 10 25 30 15 20 Years to Maturity 5 10 25 30 15 20 Years to Maturity C. Yield Curve D. Yield Curve 8% 8% 7% 7% 6% 6% 5% 5% Interest Rate 4% Interest Rate 4% 3% 3%
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