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1. Please try to explain why an inverted yield curve from Treasury bonds implies the upcoming economic recession. 2. Now you have a perpetuity that

1. Please try to explain why an inverted yield curve from Treasury bonds implies the upcoming economic recession.

2. Now you have a perpetuity that pays $30 every month. The first payment happens in exactly one month. The annual interest rate is 3% by compound interest. What is the price of this perpetuity right now? What is the price if the 3% is the interest rate for one month?

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