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Suppose the term structure of spot interest rates currently exhibits a hump at intermediate maturity ranges; i.e., shorter and longer horizon rates are less than

Suppose the term structure of spot interest rates currently exhibits a hump at intermediate maturity ranges; i.e., shorter and longer horizon rates are less than intermediate horizon rates. Which of the following theories likely provides the best explanation for this phenomenon?

Group of answer choices

A) Market segmentation theory

B) Pure expectations theory

C) Modigliani-Miller theory

D) Fisher effect

E) Liquidity preference theory

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