The ________ of the Term Structure of Interest Rates States

question 99

Multiple Choice

The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the life of the long-term bond,and investors have no preference for short-term bonds relative to long-term bonds.

• A)segmented markets theory
• B)expectations theory
• C)liquidity premium theory
• D)separable markets theory

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Definitions:

Push/Pull Capabilities

The ability to influence or direct objects, individuals, or situations using a combination of factors to either attract (pull) or repel (push) them.

New Technologies

Recent developments in science and engineering that lead to the creation of innovative products or processes.

Multinational Media Corporations

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World's Community

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