Question 6 (i) Write down an equation for the three main components of the nominal long term interest rate on a bond, clearly explaining what each symbol represents. (3marks) (ii) US inflation is picking up discuss the likely implications for US long term bond yields. (2 marks) (iii) Draw a negatively sloped yield curve and label it curve 1. On the same diagram draw a new yield curve labelled curve 2 if the expected rate of inflation, both short and long term, rises. Label your axes carefully