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The ________ theory of the yield curve states that investors will require additional compensation (yield) in order to commit their money to longer terms. From
The ________ theory of the yield curve states that investors will require additional compensation (yield) in order to commit their money to longer terms. From this, it follows that yields and longer-term secuirities would be higher than yields on shorter term securities if investors expected interest rates to hold steady.
A) Pure Expectations | ||
B) Liquidity Premium | ||
C) Preferred Habitat | ||
D) Segmented Markets |
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