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3) A downward sloping yield curve can result from: i) Forward rates that are lower than spot rates. ii) Anticipation of rising interest rates. iii)

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3) A downward sloping yield curve can result from: i) Forward rates that are lower than spot rates. ii) Anticipation of rising interest rates. iii) Anticipation of a downturn in the economy. iv) An increase in the risk aversion of long-term bond investors. C. ii, iv D. iii, iv

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