Assuming no liquidity premium-no maturity preferences

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Reference no: EM131950607

(Structure of Interest Rates)

State whether you agree or disagree with the statement below. Explain you answer.

"Assuming no liquidity premium, no maturity preferences, no default risk, and no changes in the expected real rate of return, an upward sloping yield curve implies that investors expect inflation to increase in the future."

(Maximum 3 sentences, maximum 100 words.)

Reference no: EM131950607

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