According to the expectations theory of the term structure, it is better to invest in one-year bonds,
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"According to the expectations theory of the term structure, it is better to invest in one-year bonds, reinvested over two years, than to invest in a two-year bond if interest rates on one-year bonds are expected to be the same in both years." Is this statement true, false, or uncertain?
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False The expectations theory of the term structure implies that with a 1 investment in oneper...View the full answer
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Related Book For 
The Economics of Money Banking and Financial Markets
ISBN: 978-0133836790
11th edition
Authors: Frederic S. Mishkin
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