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  3. question 2 yield curve the following chart depicts the treasury...

Question: question 2 yield curve the following chart depicts the treasury...

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Question 2. Yield curve The following chart depicts the Treasury yield curve on 2/28/2006 (ereen line) and the yield curve on 2/27/2006. (Source: Bloomberg.) Explain what these yield curves tell us about financial markets expectations of future short term rates ii) Explain what factors may have caused the change between the yield curve orn 2/27/2006 and the one on 2/28/2006.ロCURRENT ロPREVIOUS 4.75 Bloomberg LP 4.7 A + -+--/fr-->く+ 知·-·-- ㄧ-4 | 4.5 0.02 0.02 0.04 0.06 T- 10y 30y 3y 5y 3m 6m

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