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You notice that the current yield curve constructed from zero coupon bonds is gently upward sloping over the maturities 0-7 years. a) From the

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You notice that the current yield curve constructed from zero coupon bonds is gently upward sloping over the maturities 0-7 years. a) From the perspective of pure expectations theory, what is the outlook for interest rates going forward? (2 marks) b) From the perspective of liquidity preference theory, what is the outlook for interest rates going forward? (2 marks)

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