Question: 3. Consider the data given in the previous question. a. Suppose an anticipated movement as in the previous question. Market participants suddenly move to an

3. Consider the data given in the previous question.

a. Suppose an anticipated movement as in the previous question. Market participants suddenly move to an anticipated trajectory such as f0:08; 0:02; 0:08; 0:02; 0:08; 0:02g (10.98)

Assuming that this was the only exogenous change in the market, what do you think will happen to the yield on the 30-year bond?

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