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a. Assume you are a potential investor in Ghana and based on your analysis of the Ghanaian financial market, you are expecting interest rate to

a. Assume you are a potential investor in Ghana and based on your analysis of the Ghanaian financial market, you are expecting interest rate to rise in the long term. How will this expectation affect:

i. Investor's behaviour with respect to their choice for short or long-term assets.

ii. The shape of the yield curve in Ghana today.

iii. Borrowers who plan to issue securities in the financial market.

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