Graph the yield to maturity against the time to maturity

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Reference no: EM131312958

Why can forward rates be viewed as hedgeable rates? Consider the following yields to maturity:

Years to Maturity

Yield to Maturity

1

3.0%

2

3.5%

3

3.9%

4

4.4%

S

4.8%

6

5.2%

a. Graph the yield to maturity against the time to maturity.

b. Is this yield curve consistent with any of the yield curve theories? Explain.

Reference no: EM131312958

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