8) According to the liquidity premium theory of interest rates, A) investors prefer certain maturities and will not normally switch out of those maturities B) the tean structure must always be upward sloping. Clong-term spot rates are higher than the average of current and expected future short-term rates D) investors are indifferent between different maturities i the long-term spot rates are equal to the average of current and expected future short-term rates. 5) long-term spot rates are totally unrelated to expectations of future short-term rates. 15) Duration is A) the elasticity of a security's value to small coupon rate changes. B) greater than maturity for deep discount bonds and less than maturity for premium bonds. C) the time until the investor recovers the price of the bond in today's dollars. D) the weighted average time to maturity of the bond's cash flows. E) the second derivative of the bond price formula with respect to the YTM