Question 2 - (6 points) Security Yield Yield Country A Country B 3 month Treasury Bil 4 5 1 year Governement bond 5 9 3 year Governement bond 6 12 5 year Governement bond 6.5 17 10 year Governement bond 7 19 A. Plot the yield curve for Country A and Country B B. Based on your graph, and based on your knowledge of the Liquidity Premium Theory, what does the shape of Country A's yield curve predict about the movement of short-term interest rates in Country A? explain C. Based on your graph, and based on your knowledge of the Liquidity Premium Theory, what does the shape of Country B's yield curve predict about the movement of short-term interest rates in Country B? explain Question 2 - (6 points) Security Yield Yield Country A Country B 3 month Treasury Bil 4 5 1 year Governement bond 5 9 3 year Governement bond 6 12 5 year Governement bond 6.5 17 10 year Governement bond 7 19 A. Plot the yield curve for Country A and Country B B. Based on your graph, and based on your knowledge of the Liquidity Premium Theory, what does the shape of Country A's yield curve predict about the movement of short-term interest rates in Country A? explain C. Based on your graph, and based on your knowledge of the Liquidity Premium Theory, what does the shape of Country B's yield curve predict about the movement of short-term interest rates in Country B? explain