Please follow all the instructions below (Task 2). Yield Curve is in humped style, country selected: South Korea. Attached all references below your answer and in-text citation. Thank you!

South Korea Yield Curve South Korea Yield Curve - 22 Jul 2024 South Korea Government Bonds 3.5% 3.4% 3.3% 3.2% 3.1% 3% 2.9% 6Y 12Y 18Y 24Y 30Y 36Y 42Y 48Y Residual Maturity - South Korea (22 Jul 2024) .... 1M ago .... 6M ago Highcharts.com Yield ZC Price Last Residual Maturity Last Chg 1M Chg 6M Last Chg 1M Chg 6M Change 1 year 3.245% -9.3 bp -5.5 bp 96.86 +0.09 % +0.05% 19 Jul 22 Jul 2 years 3.172% -7.7 bp -16.3 bp 93.95 +0.15% +0.32% 3 years 3.110% -6.7 bp -17.1 bp 91.22 +0.20 % +0.50 % 22 Jul 3.115% -8.0 bp -24.0 bp 88.45 +0.31 % +0.94 % 19 Jul 4 years 5 years 3.131% -6.9 bp -19.3 bp 85.71 +0.33% +0.93 % 22 Jul 10 years 3.187% -6.9 bp -19.3 bp 73.07 +0.66 % +1.88 % 22 Jul 20 years 3.143% -9.4 bp -16.2 bp 53.85 +1.83 % +3.18 % 22 Jul 30 years 3.064% -10.5 bp -18.5 bp 40.44 +3.11 % +5.53 % 22 Jul 2.967% -20.8 bp -25.6 bp +13.24 % 19 Jul 50 years 23.18 +10.64 % Last Update: 22 Jul 2024 2:16 GMT+016:39 Th330thg7 4 Assignments Financial Markets and Institutions All Assignment 1 (Individual report) [% Financial Market Insights: Analysing Yield Curves an... Due Aug 2, 2024 at 23:59 Assignment 2 (Group work) [ Assignment 2: FX market analysis and trading strate... Due Aug 30, 2024 at 23:59 Assignment 3 (Individual research project) [Z Assignment 3: Individual research project (Week 12) Due Sep 20,2024 at 23:59 Calendar ol RORCETA | T :Ele Assessment 1-2.docx curve. . Apply the following theories to explain the observed shape of the yield curve, utilizing the data provided in the yield curve analysis: - Market Expectations Theory - Expectations Plus Liquidity Premium Theory - Market Segmentation Approach Task 2: Investigating the Interest Rates 1. Event Analysis: Research and collect 3 recent events in the latest years (2022/2023/2024) and explain how these events impacted the past or current level of interest rates in the assigned market. These events could include changes in economic indicators, monetary policy decisions, and geopolitical developments etc. . Determine any one recent event from the selected events in part a that could potentially impact the future yield curve shape in the assigned country. Explain how this event might influence the shape, or/and movement of the yield curve. 2. Customer Advisory: a. Investment Strategy: Assume that your customer wants to deposit USD 20,000, equivalent to the local currency. Based on your research on interest rates, provide advice on financial markets and investment strategies (short-term or long-term) that are the best suitable option for customers to invest. Justify your answer by showing numerical calculations and supporting evidence. . Risk Assessment: Assess the potential risks associated with your recommended strategy, considering the current economic environment and interest rate trends. Conclusion Summarize your overall findings and provide recommendations for your bank's investment strategy in the assigned country. Highlight any potential opportunities or risks that should be considered based on your yield curve and interest rate analysis. Instruction: Report Format: Your report should be structured in the following manner: 1. Introduction: Briefly introduce the assignment's objective and the context of the assigned country. 2. Task 1: Investigating the yield curve 3. Task 2: Investigating the Interest rates 4. Conclusion 5. References Note: Plagiarism will not be tolerated and may result in h-dn Q Notifications @ Inbox 0