Suppose the First Bank of St Louis was offering the following rates on certificates of deposit (CDs) this week:Plot the above data on a yield curve. Label the graph and the axes appropriately.

Suppose the First Bank of St Louis was offering the following rates on certificates of deposit (CDs) this week:Plot the above data on a yield curve. Label the graph and the axes appropriately.

Suppose the
First Bank of St Louis was offering the following rates on certificates of
deposit (CDs) this week:

Maturity Rate

3 month 1.50%

6 month 1.75%

1 year 2.00%

2 year 2.25%

3 year 2.50%

5 year 2.75%

10 year 3.00%

20 year 3.15%

a.
Plot the above data on a yield curve.
Label the graph and the axes appropriately.

b.
Comment on the implications of this curve to you, as a potential
investor in CDs.


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