Math/Physic/Economic/Statistic Problems
Using the Bloomberg screenshot, please help me answer this question:
Please briefly comment on the shape of the two yield curves. First, what does a yield curve show? For example, on which of the two day the yield curve is steeper? Also, suppose that an investor can borrow at the short-term rate and lend at the rate of the long-end, which of the two yield curves is more favorable to him/her? Please briefly explain why.
