Question: d) Consider the yield curve for August 9 th 2022 (in the notes and copied again below). Does the market expect rates to increase or

d) Consider the yield curve for August 9 th 2022 (in the notes and copied again below). Does the market expect rates to increase or decrease in the future (one or two sentences, please). According to the unbiased expectations hypothesis, what is the 3 -year rate the market expects 7 years from now? Are the rates for 10 and 20 year bonds on the same day (8/9/2022) consistent with the liquidity premium theory? The market segmentation theory? d) Consider the yield curve for August 9 th 2022 (in the notes and copied again below). Does the market expect rates to increase or decrease in the future (one or two sentences, please). According to the unbiased expectations hypothesis, what is the 3 -year rate the market expects 7 years from now? Are the rates for 10 and 20 year bonds on the same day (8/9/2022) consistent with the liquidity premium theory? The market segmentation theory
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