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1. Explain the theories for the term structure of interest rates including each theories shortcomings and or strengths. 2. Discuss how the term structure of

1. Explain the theories for the term structure of interest rates including each theories shortcomings and or strengths.

2. Discuss how the term structure of interest rates/yield curve is related to economic activity. Alternatively, discuss the economic significance of the term structure of interest rates/yield curve.

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