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Please given me reasoning for this question. I will be thankful to you. Kindly give detail answer so I could understand the concept

Based on the yield curves below, what is the market predicting about the movement of future short-term interest rates and future inflation rate in each of the scenario? What about long-term maturities?

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Scenario 1 Scenario 2 Yield to Maturity Yield to Maturity Term to Maturity Term to Maturity

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