1. What is the Shape of the Yield Curve today? What does that suggest that theMarket is pricing into the future of interest rates?2. Why should we care what the Term Structure of Interest Rates looks like?3. What does a Bond Rating tell us about the bond's risk? What does it not tell usabout the risk of investing in the bond?4. The Expectations Theory of the Term Structure of Interest Rates implies that theterm structure is the result of expected inflation rates in the future. What else mightcause the term structure to be what it is, that might not be in the ExpectationsTheory?

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Asked Feb 25, 2020
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1. What is the Shape of the Yield Curve today? What does that suggest that the
Market is pricing into the future of interest rates?
2. Why should we care what the Term Structure of Interest Rates looks like?
3. What does a Bond Rating tell us about the bond's risk? What does it not tell us
about the risk of investing in the bond?
4. The Expectations Theory of the Term Structure of Interest Rates implies that the
term structure is the result of expected inflation rates in the future. What else might
cause the term structure to be what it is, that might not be in the Expectations
Theory?
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1. What is the Shape of the Yield Curve today? What does that suggest that the Market is pricing into the future of interest rates? 2. Why should we care what the Term Structure of Interest Rates looks like? 3. What does a Bond Rating tell us about the bond's risk? What does it not tell us about the risk of investing in the bond? 4. The Expectations Theory of the Term Structure of Interest Rates implies that the term structure is the result of expected inflation rates in the future. What else might cause the term structure to be what it is, that might not be in the Expectations Theory?

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Shape of yield curve:

Generally, yield curve measures terms of maturity and the interest rates of an investment. It is in three shapes such as positive (upward), flat and inverted (negative)...

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