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nalin [4]
3 years ago
12

You are having a conversation with your friend Belinda about the upward-sloping yield curve that currently exists in the bond ma

rket. ​She explains this to you by saying that the upward slope to the yield curve is because longer-term bonds are less desirable than shorter-term bonds so that the issuers of longer term bonds must offer a higher interest rate as an incentive to attract buyers. Her observation means that she is a proponent of the __________ theory of interest rates.
Social Studies
1 answer:
motikmotik3 years ago
4 0

Answer:

Term Premium

Explanation:

Her observation means that she is a proponent of the term premium theory of interest rates.

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