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Answer quickly please.. According to the market segmentation theory of the term structure, Question 9 Answer a . investors' strong preference for short - term
Answer quickly please..
According to the market segmentation theory of the term structure,
Question Answer
a
investors' strong preference for shortterm relative to longterm bonds explain why yield curves typically slope downward
b
bonds of one maturity are perfect substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time.
c
bonds are inherently marketable
d
the interest rate for bonds of one maturity is determined by the supply and demand for bonds of that maturity.
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