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3) (2 points) Suppose that the yield curve changes, such that the yields on the 3-year bond decreases by 2%, the yield on the 2-year
3) (2 points) Suppose that the yield curve changes, such that the yields on the 3-year bond decreases by 2%, the yield on the 2-year bond remains the same, and that for the 1-year bond increases by 1%. What is its implication for market expectation for macroeconomy according to our yield curve analysis? 3) (2 points) Suppose that the yield curve changes, such that the yields on the 3-year bond decreases by 2%, the yield on the 2-year bond remains the same, and that for the 1-year bond increases by 1%. What is its implication for market expectation for macroeconomy according to our yield curve analysis
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