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According to the Segmented Markets theory of the term structure: the interest rate on long-term bonds will exceed the average of expected future short-term interest
According to the Segmented Markets theory of the term structure:
the interest rate on long-term bonds will exceed the average of expected future short-term interest rates.
interest rates on bonds of different maturities move together over time.
buyers of bonds prefer short-term to long-term bonds.
interest rates on bonds of different maturities move together over time and buyers of bonds prefer short-term to long-term bonds.
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