The table shows term to maturity of Australian bonds and their respective yields on 22 April 2021. Using this information answer the following questions. What do you think is the shape of the yield curve? Explain your answer. Term to Maturity Bond Yield 1 year 0.07% 2 years 0.07% 5 years 0.70% 10 years 1.66% 20 years 2.42% 30 years 2.64%
The table shows term to maturity of Australian bonds and their respective yields on 22 April 2021. Using this information answer the following questions. What do you think is the shape of the yield curve? Explain your answer. Term to Maturity Bond Yield 1 year 0.07% 2 years 0.07% 5 years 0.70% 10 years 1.66% 20 years 2.42% 30 years 2.64%
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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The table shows term to maturity of Australian bonds and their respective yields on 22 April 2021. Using this information answer the following questions.
- What do you think is the shape of the yield curve? Explain your answer.
|
Term to Maturity |
Bond Yield |
|
1 year |
0.07% |
|
2 years |
0.07% |
|
5 years |
0.70% |
|
10 years |
1.66% |
|
20 years |
2.42% |
|
30 years |
2.64% |
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