Based on the segmented market hypothesis

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1. Based on the segmented market hypothesis, the interest rate in each segment is determined by the supply and demand in the segment. This hypothesis thus predicts an upward sloping yield curve in general. True or False.

2. When the yield of a bond increases, the duration based percentage change in price is higher than the percentage change based on true price. True or False.

Reference no: EM131622002

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