What the reason for the difference in the yields

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On a single graph, plot the 1-year short-term, 5-year and 10-year intermediate-term, and 20-year long-term yields of the U.S. Treasury securities. Alongside, plot your choice of yields of bonds from a publicly traded organization, for the same time periods. *

Compare the two yield curves and answer the following questions:

Which yield curve is higher?

What is the reason for the difference in the yields?

Are any of the yield curves positively sloped? If not, are any of them inverted?

What do the shapes of the yield curves tell you about future interest rates?

Reference no: EM13197131

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