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Please mark the only INCORRECT statement about the Term Structure of Interest rates a. the Liquidity Premium builds a downward bias on yield curves b.

image text in transcribed Please mark the only INCORRECT statement about the Term Structure of Interest rates a. the Liquidity Premium builds a downward bias on yield curves b. an upward sloping yield curve indicates that the market expects that interest rates will rise c. an downward sloping yield curve indicates that the market expects that interest rates will fall d. US Treasury STRIPS generate zero-coupn bonds of different maturities e. The yield curve reflects expectations of future interest rates

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