Date 1 Mo N/A N/A N/A 01/02/01 01/03/01 01/04/01 3 Mo 5.87 5.69 5.37 6 Mo 1 Yr 5.11 5.04 5.58 5.44 5.20 2 Yr 4.82 4.87 4.92 5.14 5.03 Look at the yields for 01/02/01 in the above table. Which of the following best describes the shape of the yield curve at that time? OA. Inverted OB. Normal O C. Flat O D. Upward-Sloping 3 Yr 4.82 4.92 4.78 4.92 4.77 5 Yr . 7 Yr 4.76 4.94 4.82 10 Yr 4.97 5.18 5.07
Date 1 Mo N/A N/A N/A 01/02/01 01/03/01 01/04/01 3 Mo 5.87 5.69 5.37 6 Mo 1 Yr 5.11 5.04 5.58 5.44 5.20 2 Yr 4.82 4.87 4.92 5.14 5.03 Look at the yields for 01/02/01 in the above table. Which of the following best describes the shape of the yield curve at that time? OA. Inverted OB. Normal O C. Flat O D. Upward-Sloping 3 Yr 4.82 4.92 4.78 4.92 4.77 5 Yr . 7 Yr 4.76 4.94 4.82 10 Yr 4.97 5.18 5.07
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Transcribed Image Text:QUESTION 5
Date
01/02/01
01/03/01
1 Mo
01/04/01
3 Mo
N/A
N/A
N/A
6 Mo
1 Yr
5.11
5.58
5.44
5.20
5.87
4.82
4.92
5.69
4.92
5.14
5.37
4.78
5.03
Look at the yields for 01/02/01 in the above table. Which of the following best describes the shape of the yield curve at that time?
O A. Inverted
O B. Normal
C. Flat
D. Upward-Sloping
5.04
2 Yr
4.82
3 Yr
4.87
4.92
4.77
5 Yr
7 Yr
4.97
5.18
5.07
4.76
4.94
4.82
10 Yr
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