Question: 1. Please try to explain why an inverted yield curve from Treasury bonds implies the upcoming economic recession. 2. Now you have a perpetuity that

1. Please try to explain why an inverted yield curve from Treasury bonds implies the upcoming economic recession.

2. Now you have a perpetuity that pays $30 every month. The first payment happens in exactly one month. The annual interest rate is 3% by compound interest. What is the price of this perpetuity right now? What is the price if the 3% is the interest rate for one month?

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1 One key predictor of downturns in the economy is what is known as the yield curve This typically refers to the market for what the US government bor... View full answer

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