Question: 8 and 9 please 8 Based on Expectation Theory, if the yield curve has a positive slope, which Statement is true. A Short term rates

8 and 9 please 8 Based on Expectation Theory, if the

8 and 9 please

8 Based on Expectation Theory, if the yield curve has a positive slope, which Statement is true. A Short term rates will be higher in the future. Inflation is expected to decline B C Long term rates are lower than short term rates D Short term rates are expected to be higher in the future. 9 If the current 3 mo.T bill is 2.6% and markets expect it to rise to 5.2% in a year, based or expectation theory, what would be the 1 year fixed Treasury rate (Hint: average of the two)

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