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( a) Based on pure expectations theory, how can you explain the following shape of the yields curve of Bangladesh government bonds? Bangladesh Government Bonds

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a) Based on pure expectations theory, how can you explain the following shape of the yields curve of Bangladesh government bonds? Bangladesh Government Bonds - Yields Curve (b) In May 2021, 10 years Treasury bond rate in Bangladesh was 5.680%.justify the rate in terms of the current economic situation. Explain how the shape of the Yield curve will change if investors expect that the interest rate will decrease after few months?

S.F portal.dic.com TF portsudic.com utlook Web App 192.168.128.130 wal III Bangladesh Yield Curve - 4 Jul 2021 Bangladesh Government Bonds 8% 6 4 23 ON AZE 191 18Y 10Y 149 20Y Residual Maturity - Bangladesh (4 Jul 2021) IM ago 6M ago Highcharts.com S.F portal.dic.com TF portsudic.com utlook Web App 192.168.128.130 wal III Bangladesh Yield Curve - 4 Jul 2021 Bangladesh Government Bonds 8% 6 4 23 ON AZE 191 18Y 10Y 149 20Y Residual Maturity - Bangladesh (4 Jul 2021) IM ago 6M ago Highcharts.com

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