Which of the following is TRUE?

A plot of spot rates by maturity shows the term structure of interest rates.

The liquidity preference theory postulates that because market participants have preferences for short-term rather than long-term investments, liquidity premia are required to induce them to hold long-term assets. Therefore, long-term bonds usually have greater yields than short-term ones.

Only governments issue bonds.

According to the market segmentation theory, because there are more of long-term investors on the market than short-term ones, long-term bonds are traded in greater volume, which is why they offer greater yield to the investors.

None of the above.