According to the Expectations Theory of the Term Structure

question 87

Multiple Choice

According to the expectations theory of the term structure,

• A) the interest rate on long-term bonds will exceed the average of expected future short-term interest rates.
• B) interest rates on bonds of different maturities move together over time.
• C) buyers of bonds prefer short-term to long-term bonds.
• D) all of the above.
• E) only A and B of the above.

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