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Yield curves the following yields on u.s. treasury securities were taken from a recent financial publication: term rate 6 months 5.1% 1 year 5.5 2 years 5.6 3 years 5.7 4 years 5.8 5 years 6.0 10 years 6.1 20 years 6.5 30 years 6.3

Aplot a yield curve based on these data.
Bwhat type of yield curve is shown?
Cwhat information does this graph tell you?
Dbased on this yield curve, if you needed to borrow money for longer than 1 year, would it make sense for you to borrow short-term and renew the loan or borrow long-term?

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taskmasters

I plotted the yield curve. It is a "NORMAL" Yield Curve also referred to as positive yield curve. This is called such because the short-term yields are lower than the long-term yields.

A positive yield curve is indicative of investors requiring higher rates of return for taking the added risk of lending money for a longer period of time.

Based on the yield curve, it would make sense to borrow short-term and renew the loan than to borrow long term. 

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