Please answer questions I-IV

Arial V 10 V Xo Paste BIU. IMI 25 B C D E F Practical Exercise #1 2. Term structure of interest rates 2.5 2 Time 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 11.00 12.00 Maturity (yr) Annualized Yield (%) 0.08 0.03 0.17 0.04 0.25 0.04 0.50 0.06 1.00 0.08 2.00 0.13 3.00 0.23 5.00 0.57 7.00 0.94 10.00 1.30 20.00 1.92 30.00 2.08 1.5 Annualized Yield 23 0.5 2 Questions 0 D is the treasury yield curve upward or downward sloping 4 5 3) What is the yield of a 90-day T-bil? 27 28 H) What is the yield of a 30-year T-bond? 29 30 MWhat could explain the difference between the yields? Which theory is the most reasonable? 31