If bond investors decide that 30-year bonds are no longer as desirable an investment as they were previously, predict what will happen to the yield curve, assuming the segmented markets theory of the term structure holds.(a) parallel increase in the yield curve (b) parallel decrease in the yield curve(c) an increase in the 30-year rate with the remainder of the yield curve unchanged. (d) a decrease in the 30-year rate with the remainder of the yield curve unchanged.

Then try StudyFetch, the AI-powered platform that can answer your questions and teach you more about it!