Question: Use the table for the question(s) below. Suppose the term structure of interest rates is shown below: Term Rate 1 year 2 years 3

Use the table for the question(s) below. Suppose the term structure of

Use the table for the question(s) below. Suppose the term structure of interest rates is shown below: Term Rate 1 year 2 years 3 years 5 years 10 years 20 years (EAR%) 5.00% 4.80% 4.60% 4.50% 4.25% 4.15% What is the shape of the yield curve and what expectations are investors likely to have about future interest rates?

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