a. Based on the current shape of the yield curve, what does the market expect will be the general course of nominal interest rates over the next few years?

b. Under normal circumstances the net asset value (NAV) of an open-end mutual fund or an ETF is a good measure of the value of a share in the fund. Why is this the case?

c) However, when the Russian stock market was closed immediately following the invasion of the Ukraine, it was not even possible to calculate the NAV of ETFs investing in Russian stocks. Nevertheless, it was asserted that the price of the ETFs during this period of market closure provided useful information about the value of Russian stocks. Does this assertion make sense? Explain why or why not.