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Assume investors are indifferent among maturities. Following are the annualized rates for different maturities: Annualized rate 12% 11% Maturity 1 year 2 year 3 year

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Assume investors are indifferent among maturities. Following are the annualized rates for different maturities: Annualized rate 12% 11% Maturity 1 year 2 year 3 year 4 year 5 year 10% 9% 8% Describe the yield curve with a few words and explain what it might hint about future economic conditions? (Cite relevant theory) Assume investors are indifferent among maturities. Following are the annualized rates for different maturities: Annualized rate 12% 11% Maturity 1 year 2 year 3 year 4 year 5 year 10% 9% 8% Describe the yield curve with a few words and explain what it might hint about future economic conditions? (Cite relevant theory)

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