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The current one year interest rate is 2.0% and the current two year interest rate is 3.5%. a. Is the yield curve normal, inverted, or

The current one year interest rate is 2.0% and the current two year interest rate is 3.5%. a. Is the yield curve normal, inverted, or flat? b. Are future short term interest rates expected to fall? Explain. c. What is the 1-yr interest rate expected to be one year in the future? Show work.

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