Question 13 2 pt Suppose the term structure of spot interest rates currently exhibits a hump at intermediate maturity ranges: le shorter and longer horizon rates are less than intermediate horizon rates. Which of the following theories likely provides the best explanation for this phenomenon? Fisher effect Modigliani-Miller theory Liquidity preference theory Market segmentation theory Pure expectations theory 25 Question 14 Suppose your boss asks for your best estimate of the current 6 year risk free interest rate. You would answer by finding today's Yield to maturity on Treasury bond that was issued 6 years Yield to maturity on a Treasury bond with o years remaining maturity Yield to maturity on a Treasury STRIPS with ovcars remaining maturity 6-year implied forward rate that will occur 1 year from now. Discount yield for Treasury bills but was measure the market is free rate