6.25 pts You have been asked to predict the shape of the yield curve using Traditional Term Structure Theories. The results of your analysis is as follows: Expectations Theory: Investors expect rates to rise in the future due to higher inflationary expectations. Preferred Habitat & Market Segmentation Theory, Pension funds and insurance companies continue to be large buyers of long-dated Treasury bonds (e.g. 10-30 year maturities), while the US Treasury continues to issue more short-term (T-bills, and intermediate term 12- 10 year) notes and less long dated Treasury bonds. Convexity Bias: The convex nature of long-dated bonds continues to attract many bond investors. Which yield curve shape BEST represents the results of your analysis as outlined above? Can't be determined Steep Rising Term Structure: Expectations Theory, Preferred Habitat and Convexity Bias all suggests a rising yield curve with higher long-term rates, The net effect in a very steep yield curve shape. Inverted Term Structure Expectations Theory suggests a flat yield curve. Preferred Habitat suggests a rising yield curve while the Convexity Bias suggests an inverted shape. The net effect in an inverted yield curve shape. Inverted Term Structure: Expectations Theory suggests an inverted yield curve. Preferred Habitat suggests a rising yield curve which offsets the inverted shape due to the Convexity Blas. The net effect is an inverted yield curve. Flat Term Structure: Expectations Theory suggests arising yield curve, while the Preferred Habitat and Convexity Bias Theories suggest an inverted term structure. The net effect is a flat yield curve shape