The term structure theory in which investors can be induced by relatively attractive yields to hold debt
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The term structure theory in which investors can be induced by relatively attractive yields to hold debt securities whose maturities do not match their investment horizon is best described as the:
A. Preferred habitat theory.
B. Segmented markets theory.
C. Unbiased expectations theory.
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A is correct Preferred habitat theory asserts that ...View the full answer
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