What term structure theory is inconsistent with downward sloping yield curve? Liquidity preference Inflation expectations Unbiased expectations Preferred habitat An annual bond with a 5 -year maturity, 5% coupon and 5% ytm has a duration of 4.5460 . Compute the percent price change predicted by the duration rule if yields go down by 1%. 5% 4.5460% 4.3295% 4.3295%