kindly explain the yield of the bond (flat,steeper,inverted) during different stages of business cycle.
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During different stages of the business cycle, the shape of the yield curve can change, affecting the yield on bonds in different ways. The yield curve plots the yield on bonds of different maturities, and its shape can indicate market expectations of future economic conditions.
In summary, during a flat yield curve, yields on short-term and long-term bonds tend to be similar, whereas during a steep yield curve, yields on long-term bonds are higher than those on short-term bonds. During an inverted yield curve, yields on short-term bonds are higher than those on long-term bonds, which is often considered a warning sign for an economic recession.