Which yield curve theory is based on the premises that financial instruments of different terms are not substitutable and therefore the supply and demand in the markets for short-term and long-term instruments is determined largely independently?
Which yield curve theory is based on the premises that financial instruments
of different terms are not substitutable and therefore the supply and demand in the markets for short-term and long-term instruments is determined largely independently?
The expectation hypothesis.
The segmented market hypothesis.
All of these answers.
The liquidity premium theory.