Question: a)What is yield curve? Explain whether it can be downward sloping. b)If bond investors decide that 30-year bonds are no longer as desirable an investment

a)What is yield curve? Explain whether it can be downward sloping.

b)If bond investors decide that 30-year bonds are no longer as desirable an investment as they were previously, predict what will happen to the yield curve, assuming the expectations theory of the term structure holds.

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