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The theory of the term structure of interest rates must explain One of the following facts: A. In an efficient market, a securitys price fully
The theory of the term structure of interest rates must explain One of the following facts:
A. | In an efficient market, a securitys price fully reflects all available information | |
B. | Interest rates on bonds of different maturities move together over time. | |
C. | In an efficient market, all unexploited profit opportunities will be eliminated | |
D. | Upward-sloping: long-term rates are above short-term rates |
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