The segmented markets theory

is unable to account for upward$-$sloping yield curves.

explains upward$-$sloping yield curves as resulting from the demand for long$-$term bonds being low relative to the demand for short$-$

term bonds.

explains upward$-$sloping yield curves as resulting from the favorable tax treatment of long$-$term bonds.

explains upward$-$sloping yield curves as resulting from the demand for long$-$term bonds being high relative to the demand for short$-$

term bonds.