9. Term premium theory Which of the following accurately describes a principal argument of the term premium theory of the yield curve? Long-term interest rates are based on the expectations of what short-term interest rates will be in the future. Everything else constant; bondholders prefer short-term bonds to long-term bonds. Short-term interest rates are based on the expectations of what long-term interest rates will be in the future. Short-term and long-term bonds are usually traded in the same market. Which of the following yield curves is consistent with the main argument of the term premium theory? 9. Term premium theory Which of the following accurately describes a principal argument of the term premium theory of the yield curve? Long-term interest rates are based on the expectations of what short-term interest rates will be in the future. Everything else constant; bondholders prefer short-term bonds to long-term bonds. Short-term interest rates are based on the expectations of what long-term interest rates will be in the future. Short-term and long-term bonds are usually traded in the same market. Which of the following yield curves is consistent with the main argument of the term premium theory? Panel A Panel 8 9. Term premium theory Which of the following accurately describes a principal argument of the term premium theory of the yield curve? Long-term interest rates are based on the expectations of what short-term interest rates will be in the future. Everything else constant; bondholders prefer short-term bonds to long-term bonds. Short-term interest rates are based on the expectations of what long-term interest rates will be in the future. Short-term and long-term bonds are usually traded in the same market. Which of the following yield curves is consistent with the main argument of the term premium theory? 9. Term premium theory Which of the following accurately describes a principal argument of the term premium theory of the yield curve? Long-term interest rates are based on the expectations of what short-term interest rates will be in the future. Everything else constant; bondholders prefer short-term bonds to long-term bonds. Short-term interest rates are based on the expectations of what long-term interest rates will be in the future. Short-term and long-term bonds are usually traded in the same market. Which of the following yield curves is consistent with the main argument of the term premium theory? Panel A Panel 8