0 Chapter6: Interest Rates ×y::. MindTap . Cengage Lean × Min Tap. Cengage Lean

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0 Chapter6: Interest Rates ×y::. MindTap . Cengage Lean × Min Tap. Cengage Lean ×( ? . Secure I https://ng.cengage.com/static/nb/uvindex.htm?nbld-84 1770&nbNodeld; MINDTAP Lh Ub: Assignment-Interest Kates Due on jun 17 a 11 59 PM CDT Attempts Average 6. Factors that impact the yield curve AaAa ? There are three factors that can affect the shape of the Treasury yield curve(re IPte and MRA) and five factors that can affect the shape of the corporate yield curve (r,IP, MRP, DRP and LA) The yield curve reflects the aggregation of the impacts from these factiors Suppose the real risk-tree rate and inflation rate are expected to remain at their current levels throughout the oreseeable fubure. Consider all factors that affect the yield curve. Then identify which of the following shapes that the US Treasury yield curve can take Check all that apply Downward-sloping yield cuive Upward-sloping yield curve Inverted yield curve Identify whether each of the ollowing stabements is brue or alse False It infiation is expected to decrese in the fubure and the real roto is expected to ernin steady, then the Treasury yield curves downward soong (Assume ,?,-0.) The defauit risk on Walimart's short-torm deot eill be higher than the default risk on its O long-term dabt ?rwld curve fora Be0rated corporate ore s expdid to be above ee US Treasury bond yiuld curve Yials curves of highly iquid ossets st be or than yheld caves of relativey liqid Treesary yield curve is othed in the fog grap pe here to

Explanation / Answer

6) Cannot see question 6 clearly

b) True or False

c) Option a. If the pure expectations theory is correct future short term rates are expected to be higher than the current short term rates.

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