Question 21 1 pts The term structure is the relation between maturity and YTM for pure discount bonds. Based on the information given, which graph corresponds to the term structure implied by the bond prices in the table? YTM Maturity Bond Bond Face (years) Price Value $980.39 $1,000 $942.60 $1,000 $901.94 $1,000 YTM Fig 1 YTM Fig 2 Maturity Maturity YTM Fig 3 YTM Fig4 Maturity Maturity Figure 3 Figure 4 Figure 2 Figure 1 Question 22 1 pts Assume investors become more risk averse and sell their long maturity bonds and buy short maturity bonds with the proceeds. Based on these events you would expect interest rates at all maturities to decrease equally the term structure to become steeper sloped interest rates at all maturities to increase equally the term structure to become flatter sloped Question 24 1 pts Given a bond with the following features, what is the bond's YTM? Maturity 4 years. Coupon Rate 5% Face Value $1,000 Annual Coupon Price $995 5.66% 4.67% 5.03% 5.14%