Q1. The article argues that the inversion of the yield curve in September 2019 might not be a signal of an upcoming recession. Explain why and relate your explanation to a theory of the term structure of interest rates.

Q2. The article argues that pension funds and insurers are driven to long-term bonds to close the "duration gap". Why would long-term bonds be the natural candidate to close the "duration gap"?

Q3 .If you expect the yield curve to invert next year, with spot rates for maturities of 10-years and above falling and spot rates for maturities less than 10-years rising. Given your forecast, explain which of bond, Bond A or Bond B you would recommend for a long position over the upcoming year: Bond A -discount bond with a duration of 12-years and YTM of 5%; Bond B -coupon rate of 10%, a duration of 12-years, and a YTM of 5%.