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According to the segmented markets theory, if most investors suddenly preferred to invest in long-term securities and most borrowers suddenly preferred to issue short-term securities,
According to the segmented markets theory, if most investors suddenly preferred to invest in long-term securities and most borrowers suddenly preferred to issue short-term securities, there would be____. Explain why.
a. downward pressure on the price of long-term securities.
b. downward pressure on the yield of long-term securities.
c. downward pressure on the price of long-term securities AND downward pressure on the yield of long-term securities.
d. downward pressure on the short-term yields.
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