Reference no: EM133061802

You're part of a team that's in charge of a bond portfolio worth $100 million today, 5 November 2021, with a duration of just under ten years. You have a wide range of bonds in your portfolio, including Treasury, corporate, and municipal bonds with maturities ranging from 6 months to 30 years. Embedded options of various forms are found in about 20% of your bonds. Your entire bond portfolio is rated investment grade.Your team predicts that the pandemic will be under control in most nations relatively soon, and that financial markets will rebound to their January 2020 levels in approximately a year. Your task is to defend and preserve your current riches, providing that your prognosis is right. You want to enter trades strategically now and/or at opportune points in the following twelve months that will seek to be cost-neutral and duration-neutral while allowing you to profit on anticipated yield curve shifts.

1.) Describe with appropriate language the change(s) in the yield curve shape from January 2020 to November 2021.