- What is the yield curve and why could it be inverted? - What does the shape of the yield curve tell us about the future expectations? - The government shut down today, how should the government shut down affect the yield curve? - PROBABILITY: Flip a head, I will be given $1, Flip a tail, $1 is given to the other person. Play as long as we’d like, It ends when I say it does. Do you want to play this game and why? Or why are you indifferent? Turn the tables, other players can end the game instead of me. How does that impact decision making? Do you still want to play? - What are some of the risks that either a fixed income or equity investor need to consider? Speak to specific examples of those risks or identify different instruments that may be susceptible to that risk. For example buying a bond or an equity. - → Interest rate risk, is a 2 year bond or a 10 year bond more sensitive to interest rates and why