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Suppose the current one-year interest rate is 3.5%. If it is known with certainty that the one-year interest rate will be 2.7% next year and

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Suppose the current one-year interest rate is 3.5%. If it is known with certainty that the one-year interest rate will be 2.7% next year and 1.6% the following year. What is the shape of the yield curve? Ascendingormal. Descending/inverted. Flat. None of the above

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