CHAPTER The Risk and Term Structure of Interest Rates 139 WEB EXERCISES Go to www.bloomberg.com and click on Market Data and then Rates & Bonds to find information about the yield curve in Australia, Brazil, Germany, Hong Kong, Japan, the United Kingdom, and the United States What does each of these yield curves tell us about the public s expectations of future movements of short-term interest rates? Investment companies attempt to explain to investors the nature of the risk the investor incurs when buying shares in their mutual funds For example, Vanguard (a U.S company) carefully explains interest rate risk and offers alternative funds with different interest rate risks Go to http://flagship.vanguard.com/VGApp/ hnw/FundsStocksOverview a Select the bond fund you would recommend to an investor who has very low tolerance for risk and a short investment horizon Justify your answer b Select the bond fund you would recommend to an investor who has very high tolerance for risk and a long investment horizon Justify your answer Be sure to visit the MyEconLab website at www.myeconlab.com.This online homework and tutorial system puts you in control of your own learning with study and practice tools directly correlated to this chapter content On the MyEconLab website you will find the following mini-case for this chapter: Mini-Case 6.1:Yield Curve Hypotheses and the Effects of Economic Events