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Business, 20.09.2020 14:01 genesist720
Imagine that the yield curve is currently flat. The Treasury announces that they will no longer issue securities with maturities longer than two years. As a result, long-term government bonds will be refinanced using only relatively short-term debt. If the "market segmentation theory" of the yield curve is correct, what will happen to the slope of the yield curve as a result of this policy change? Explain briefly.
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Imagine that the yield curve is currently flat. The Treasury announces that they will no longer issu...
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