Question: The yield curve is currently flat. You believe that next year, it will remain flat but lie lower than the current yield curve. Assuming the
The yield curve is currently flat. You believe that next year, it will remain flat but lie lower than the current yield curve. Assuming the Expectations Hypothesis fully describes the term structure, how should you optimally invest given your beliefs? Indicate the type of asset and the position in the asset you would take.
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