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Q1: Evaluate the European bond yield curve below (the purple line). Utilizing an adequate theoretical lens, explain what the yield curve indicates about the direction

Q1:

Evaluate the European bond yield curve below (the purple line). Utilizing an adequate theoretical lens, explain what the yield curve indicates about the direction of future interest rates, and what this could mean about future lending decisions

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1.50 1.00 .50 00 50 TOTAL RETURNS END YIELDS START YIELDS 3M 6M 14 2Y 3Y 4Y 7Y 8Y 9Y 10 15 20 30

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