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March 29, 2015

Homework Help: finance (structure of interest rates)

Posted by Jason on Friday, July 25, 2008 at 11:10am.

Some analysts believe that the term structure of interest reates is determined by the behavior of various types of financial institutions. this theory is called the:

A. expectations hypothesis
B. segmentation theory
C. liquidity premium theory
D. theory of industry supply and demand for bonds

The structure of interest rates is also know as the yield curve, so I like the expectations theory (A)

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