Question: Sir please solve this question faster. I need it urgently I am running out of time for my hw. Just make sure the solution is

Sir please solve this question faster. I need it urgently I am running out of time for my hw. Just make sure the solution is correct. Please Solve fast. Sir please solve this question faster. I need it urgently I am

1. In March 1980, all rates were relatively high, and short-term rates were higher than long-term rates, so the yield curve on that date was downward sloping. However, in July 2003, all rates were much lower, and long-term rates were higher than short-term rates, so the yield curve at that time was upward sloping. And in July 2006, all rates were higher than in 2003, and short and long-term rates did not differ much, so the yield curve was fairly flat, or horizontal. Why does the shape of the yield curves significantly differ from one point in time to another point in time? Explain with necessary numerical data, and illustrate by means of a chart

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