Determine the shape of the yield curve

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a. Determine the shape of the yield curve during the 2006-2007 time period. You can gather information to construct the yield curve from the Federal Reserve Web site.

Alternatively, many Web sites, such as stockcharts.com (https://stockcharts.com/charts/YieldCurve.html), provide pictures of historical yield curves.

Looking at this yield curve, do you think that the weak economic conditions and market downturn that began in the fall of 2008 were a surprise to an alert observer?

b. Gather data for the yield curve this week and for the yield curve one year ago. What changes do you notice? What impact do you think this will have on the stock market?

Reference no: EM131231923

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