Three Theories Have Been Proposed to Explain the Term Structure

question 9

Short Answer

Three theories have been proposed to explain the term structure of interest rates.They are: ________________________,______________________,and ____________________.

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Definitions:

Purchaser

An individual or entity that acquires goods or services in exchange for payment.

Competition

The rivalry among businesses to attract customers, improve offerings, and achieve a higher market share.

Repudiation

The refusal to acknowledge or pay a debt or fulfill a contract or agreement.

Contractual Right

A legally enforceable claim that arises out of a contract, allowing a party to demand performance or compensation if the contract terms are not met by the other party.