Which of the Following Is True of the Analysis of the Term

question 32

Multiple Choice

Which of the following is true of the analysis of the term structure of interest rates?​

• A)​It assumes that investors in long­term securities face high transaction costs.
• B)​It assumes that investors can predict short­term interest rates accurately.
• C)​It assumes that the yield curve is always flat.
• D)​It assumes that investors in bonds have a preferred habitat.

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