Todays date is 18 August 2022. Using this information, consider the following debt securities.

Official Cash Rate: is 2.10%

Bank Bill: A bank bill with a face value of $6.064 million which has 83 days to maturity and is trading at a yield of 2.78%

Bond A $12.0417 million face value bond that was issued today and which has a 3.75% coupon, a 2 September 2045 maturity, that is trading at a yield to maturity of 4.01% p.a.

1. In one word, what is the shape of the yield curve?
2. What is the fair market price for:
   1. Bank bill
   2. Bond

3. 40 days later, following the tightening of monetary policy by the Reserve Bank of Australia, the yield curve has shifted such that all yields across the yield curve are now higher by 0.65%. What is the fair market price for your debt securitites now?

a. Bank bill

b. Bond