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Which fact about the term structure is the expectations theory able to explain ? a. Why yields on short-term bonds are more volatile than yields
Which fact about the term structure is the expectations theory able to explain ?
a. Why yields on short-term bonds are more volatile than yields on long-term bonds.
b. Why interest rates on bonds with different terms to maturity tend to move together over time.
C. Why long term bonds usually are less liquid than short term bonds with the same default risk
d. Why longer term bonds usually tend to be higher than shorter term yields
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