Assume the following returns and yields: U.S. T-bill = 0.15%, 5-year U.S. T-note = 0.28%, 10-year U.S. T-note = 0.36%, 15-year U.S. T-bond = 0.32%, 20-year U.S. T-bond = 0.27%, and 25-year U.S. T-bond = 0.23%. Based on this information, the shape of the yield curve is ________ and reflects the ______________.

Answer Choices:

upward sloping; expectation theory

normal; interest rate theory

humped; market segmentation theory

downward sloping; liquidity preference theory