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Find a recent yield curve. Using the theories of the term structure of interest rate, explain...

  1. Find a recent yield curve. Using the theories of the term structure of interest rate, explain its shape. Make sure to provide the date and source of your finding.
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Answer #1

Please find the rate of recent yield curve as below:

Date 1 Mo 2 Mo 3 Mo 6 Mo 1 Yr 2 Yr 3 Yr 5 Yr 7 Yr 10 Yr 20 Yr 30 Yr
4/24/2020 0.1 0.11 0.12 0.14 0.18 0.22 0.26 0.36 0.51 0.6 0.98 1.17

This rates are as on 24th April 2020 and data is taken form treasury. gov site.

Shape of recent yield curve is upward sloping or rising yield curve. This yield curve is defined by the liquidity premium theory where the liquid securities having less yield than the the illiquid securities due to risk associated with that.

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