Since yield curves are usually upward sloping, the ________ indicates that, on average, people tend to...
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Since yield curves are usually upward sloping, the ________ indicates that, on average, people tend to prefer holding short-term bonds to long-term bonds.
market segmentation theory.
expectations theory.
liquidity premium theory.
both A and B of the above.
both A and C of the above.
Homework Answers
Ans both A and C of the above.
Since yield curves are usually upward sloping, the market segmentation theory, liquidity premium theory indicates that, on average, people tend to prefer holding short-term bonds to long-term bonds.
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Since yield curves are usually upward sloping, the ________
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