Assume the following: In 2030, 90% of the outstanding bonds issued by the United States, showed a maturity of less than four years. The comparable share for all OECD member countries was 60% at that time. Please provide short answers to the questions below.
a) If interest rates rise, who is less vulnerable to higher interest payments:
The US or the OECD as a whole?
b) Is a treasurer who is lengthening the average maturity of outstanding bonds expecting interests rates in the near to medium-term to rise or to fall? Please add one sentence to explain your answer.
c) When interest rates for bonds with very long maturities (e.g., 30 years) are very similar to interest rates for bonds with shorter maturities (e.g., 10 years), is it an indication that i) inflation will remain similar to what it is today or ii) rise compared to its level today?