[Solved] The ________ of the Term Structure of Interest Rates States

Question 100
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The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the life of the long-term bond,and investors have no preference for short-term bonds relative to long-term bonds.


A)segmented markets theory
B)expectations theory
C)liquidity premium theory
D)separable markets theory

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