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Unformatted text preview: years ago (September 1999). Draw the three yield curves and place on the same graph as the one in problem 1. Your graph should have three curves upon it. Attach the documentation for the 2001, 2000 and 1999 curves. Be sure to label both appropriately. 3 Given the Yield Curves you've constructed in #1 and #2 explain the differences in the level of interest rates between the years using the Loanable Funds and the Liquidity 1 Preference theory 4. Explain the shape of the 2002 curve using the unbiased expectation theory and the segmentation theory and its significance to the investor. 2...
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This note was uploaded on 07/09/2011 for the course FIN 4504 taught by Professor Banko during the Summer '08 term at University of Florida.
- Summer '08
- Yield Curve