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(Figure 16

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(Figure 16.1 The Yield Curve) (Figure 16.1 The Yield Curve)   Your mother asks you to explain the yield curve from November 11, 2006. She suspects something is wrong but isn't sure. What do you tell her? And what explanations do you have for why her suspicions are right? Your mother asks you to explain the yield curve from November 11, 2006. She suspects something is wrong but isn't sure. What do you tell her? And what explanations do you have for why her suspicions are right?

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First, we note that generally the yield ...

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