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screenshot Which of the following accurately describes a principal argument of the term premium theory of the yield curve? Short-term and long-term bonds are traded

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Which of the following accurately describes a principal argument of the term premium theory of the yield curve? Short-term and long-term bonds are traded in segmented markets. Short-term and long-term bonds are usually traded in the same market. O Shorter-term bonds have higher yields than longer-term bonds to incentivize investors to purchase shorter-term bonds, which are generally less desirable than longer-term bonds. Longer-term bonds have higher yields than shorter-term bonds to incentivize investors to purchase longer-term bonds, which are generally less desirable than shorter-term bonds. Which of the following yield curves is consistent with the main argument of the term premium theory? ? (? Panel A Panel B Yield Yield Term Term

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