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Why interest rate tends to increases before the crisis and then decline during the crisis? (refer to image)

Why interest rate tends to increases before the crisis and then decline during the crisis? (refer to image)

Essentials Of Investments
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
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Why interest rate tends to increases before the crisis and then decline during the crisis? (refer to image)

**Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity** - **Observation Date:** 2021-11-12 - **Yield:** 1.58% - **Units:** Percent - **Data Frequency:** Daily - **Last Updated:** November 15, 2021 **Graph Explanation:** The graph presents the historical yield on U.S. Treasury securities with a 10-year constant maturity from 1962 to 2021. The yield is expressed in percentage terms on the Y-axis, while the timeline is depicted on the X-axis, spanning from 1962 to the end of 2021. Key features of the graph include: - A noticeable peak in yield during the early 1980s, where yields approached 15%. - A generally declining trend in yields from the 1980s forward, with fluctuations along the way. - Grey-shaded vertical bars representing periods of U.S. recessions, based on data from the U.S. Federal Reserve System. - A gradual decline leading into the 2020s, coinciding with recent economic conditions. The data indicates that U.S. Treasury yields have demonstrated significant variability influenced by various economic factors over the decades. **Source:** Board of Governors of the Federal Reserve System (U.S.) - Website: fred.stlouisfed.org This graph provides valuable insights into historical economic trends and the impact of fiscal policy over time.
Transcribed Image Text:**Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity** - **Observation Date:** 2021-11-12 - **Yield:** 1.58% - **Units:** Percent - **Data Frequency:** Daily - **Last Updated:** November 15, 2021 **Graph Explanation:** The graph presents the historical yield on U.S. Treasury securities with a 10-year constant maturity from 1962 to 2021. The yield is expressed in percentage terms on the Y-axis, while the timeline is depicted on the X-axis, spanning from 1962 to the end of 2021. Key features of the graph include: - A noticeable peak in yield during the early 1980s, where yields approached 15%. - A generally declining trend in yields from the 1980s forward, with fluctuations along the way. - Grey-shaded vertical bars representing periods of U.S. recessions, based on data from the U.S. Federal Reserve System. - A gradual decline leading into the 2020s, coinciding with recent economic conditions. The data indicates that U.S. Treasury yields have demonstrated significant variability influenced by various economic factors over the decades. **Source:** Board of Governors of the Federal Reserve System (U.S.) - Website: fred.stlouisfed.org This graph provides valuable insights into historical economic trends and the impact of fiscal policy over time.
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