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Question 5 (2 points) Saved The Market Segmentation Theory implies: The forward rate for year n is less than the expected future spot rate in

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Question 5 (2 points) Saved The Market Segmentation Theory implies: The forward rate for year "n" is less than the expected future spot rate in year "n". Arbitrage opportunities exist which can be exploited for riskless profits. The average bond investor is a rational and risk seeking individual. There may exist a Bond X with a lower YTM than Bond Y, despite a later maturity date and the same coupon. Previous Page Next Page Page 5 of 10

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