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valputin valputin
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8 years ago
According to the segmented markets theory of the term structure
A) the interest rate for each maturity bond is determined by supply and demand for that maturity bond.
B) investors' strong preferences for short-term relative to long-term bonds explains why yield curves typically slope downward.
C) because of the positive term premium, the yield curve will not be observed to be downward-sloping.
D) bonds of one maturity are close substitutes for bonds of other maturities, therefore, interest rates on bonds of different maturities move together over time.
Textbook 
The Economics of Money, Banking and Financial Markets, Business School Edition

The Economics of Money, Banking and Financial Markets, Business School Edition


Edition: 4th
Author:
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Our course uses > The Economics of Money, Banking and Financial Markets
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MeelaMeela
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8 years ago
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valputin Author
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8 years ago
Perfect answer, thx
Our course uses > The Economics of Money, Banking and Financial Markets
wrote...
8 years ago
You're very welcome, valputin
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