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EXTRA CREDIT 1 - the bonds which means people who by...

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Treasuries Yield (%) 0.03 0.05 0.11 0.17 0.39 0.69 1.53 2.23 2.93 4.18 What is the shape of the yield curve?  What implications does this have for the economy? BONDS, RATES & CREDIT MARKETS OVERVIEW 1-Month Bill* 3-Month Bill* 6-Month Bill* 1-Year Note* 2-Year Note* 3-Year Note* 5-Year Note* 7-Year Note* 10-Year Note* 30-Year Bond* The yield curve is a increasing line, which means the longer the bond, the higher the yield rate. Inadditio becomes steeper as the time of bone increases. From the standpoint of economy, the yield rate of bond
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Unformatted text preview: the bonds, which means people who by longer-life bond will get more many back in the future. Also this securities are more risky, but investors can get more benifit for taking the risks to invest in these financia 1-Month Bill* 6-Month Bill* 2-Year Note* 5-Yea 0.5 1 1.5 2 2.5 3 3.5 4 4.5 RATES & CREDIT MA on, the slope of the graph ds is corelated to the length of situation imply that Long-term al products. ar Note* 10-Year Note* ARKETS OVERVIEW Yield (%)...
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