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Consider the following investment policies: I. Invest in a series of four 1-year zero-coupon bonds. II. Invest in one 4-year zero-coupon bond. Which term structure

Consider the following investment policies: I. Invest in a series of four 1-year zero-coupon bonds. II. Invest in one 4-year zero-coupon bond. Which term structure hypothesis assumes that investors are not indifferent between these two investment policies? A. Unbiased expectations hypothesis. B. Market segmentations hypothesis. C. Preferred habitat hypothesis. D. Liquidity preference hypothesis.

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