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The yield on a thirty- year Treasury bond is 8% at the same time as the yield on two- year Treasury note is 5%. This
The yield on a thirty- year Treasury bond is 8% at the same time as the yield on two- year Treasury note is 5%. This occurrence A. indicates that the bond market is anticipating that inflation will fall. B. is well explained by the segmented markets theory. C. is largely explained by the favorable tax treatment of Treasury notes. D. indicates that the yield curve is downward sloping.
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