The viewpoint that investors require additional yield to entice them into holding long term securities since the investors have no access to the funds for such a long time is the viewpoint of the Market liberation theory Segmentation Theory Expectation Hypothesis Liquidity Premium Theory An Annuity Due is defined as An amount of money received today but saved for the future A series of consecutive payments or receipts of equal amount received at the end of the time period. A series of consecutive payments or receipts of equal amount received at the beginning of the time period The inverted value of a lump sum The idea that the long term rates on the yield curve can be explained as a function of what short term rates will be at a certain time in the future is called Expectation Hypothesis Market Liberation Theory Liquidity Premium Theory Segmentation Theory Given some amount to be received several years into the future, the higher the interest rate assumption that can be earned during those years, the present value of that future amount will be higher lower Will be variable Stay the same