Given the expectations theory of interest rates asexplained in the lecture notes posted, compute the yield curve fortreasury securities if the real rate in the general economy is 0,and the inflationary expectations are as follows:YearInflationary Expectation11%22%32%43%54%64%73%83%93%103%Be sure to compute a separate yield for the 1, 2, 5 and10 year maturity when making your yield curve.Assume MRP is computed as 0.1 basis point per year ofmaturity.Explain the shape of your yield curve and what it meansin terms of future economic activity.
Given the expectations theory of interest rates asexplained in the lecture notes posted, compute th
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