September 2023 Suppose the yield curve is upward sloping but that expected future short term rates are constant

2024 Suppose the yield curve is upward sloping, but that expected future short-term rates are Assignment Help

Suppose the yield curve is upward sloping but that expected future short term rates are constant 2023

Suppose the yield curve is upward sloping, but that expected future short-term rates are constant. This may be because A) compounding results in non-linear effects which increase long-term yields B) bondholders prefer to hold short-term bonds for liquidity reasons C) bondholders prefer to hold long-term bonds for liquidity reasons D) markets are irrational E) none of the above

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