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If the market segmentation hypothesis holds, which of the following statements is correct? Investors who trade in the short-term bond market do not (or cannot)
If the market segmentation hypothesis holds, which of the following statements is correct? Investors who trade in the short-term bond market do not (or cannot) trade in the long-term bond market and vice versa. An increase in the supply of the short-term bond will not drive up the price of long-term bond. An increase in the demand of the short-term bond will drive up the price of long-term bond. Options A and C only. Options A and B only
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