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QUESTION 4 (20 MARKS) The yield curve is a representation of the relationship between yields to maturity and time to maturity for bonds. Required a)

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QUESTION 4 (20 MARKS) The yield curve is a representation of the relationship between yields to maturity and time to maturity for bonds. Required a) List and describe two (2) main economic theories which explain the shape of the yield curve. (12 marks) b) Describe two (2) different uses of the yield curve (8 marks)

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