Consider the following yields to maturity:
Years to Maturity | Yield to Maturity |
1 | 3.0% |
2 | 3.5% |
3 | 3.9% |
4 | 4.4% |
5 | 4.8% |
6 | 5.2% |
a. Graph the yield to maturity against the time to maturity.
b. Is this yield curve consistent with any of the yield curve theories? Explain.