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  3. s treasury yield curve is plotted in the following

S Treasury yield curve is plotted in the following graph INTEREST RATE 5 7 3...

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Basic Math

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S Treasury yield curve is plotted in the following graph INTEREST RATE 5 7 3 2 0 5 10 15 25 30 20 YEARS TO MATURITY Based on an upward sloping normal yield curve as shown which of the following statements is correct O There is a positive maturity risk premium O Inflation must be expected to increase in the future O If the pure expectations theory is correct future short term rates are expected to be higher than cu thoopt must be correct

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