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Question 3 [16 marks) The general shape of yield curve is determined by THREE (3) theories, explain what they are. Additionally, name the yield curve

Question 3 [16 marks) The general shape of yield curve is determined by THREE (3) theories, explain what they are. Additionally, name the yield curve of a condition circled in the chart below and suggest which theory may explain the curve. 1. Morten hun mm Monday 6:00 PM OG AM 600 M GOG AM Legend: Grey line = 10-year bond Black line = 2-year bond

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