Which of the following about interest rates is NOT correct?

a.

For an inverse yield curve, short-term interest rates are higher than long-term interest rates

b.

The segmented markets theory rejects the assumption all bonds are prefect substitutes for each other

c.

The pure expectations theory assumes all bonds are perfect substitutes for each other regardless of their term to maturity

d.

Borrowers apart from a government generally pay a yield above the risk-free rate

e.

The liquidity theorem contends that investors have a preference for long-term securities as they have greater liquidity