Based on the material presented in class, and holding other economic variables unchanged (ceteris paribus), what happens to bond yields if the inflation rate increases from a steady and predictable 1% to a steady and predictable 3%? We expect: Question 6 options: Bond yields to fall by more than 2%. Bond yields to fall by about 2% Bond yields to fall but by less than 2% No particular change in bond yields. Bond yields to rise but by less than 2%. Bond yields to rise by about 2%. Bond yields to rise by more than 2%