Question: 2. There are 4 term structures: Pure Expectation Theory (PET), Liquidity Premium Theory (LPM), Market Segmentation Theory (MST), Preferred Habitat Theory (PHT). Which term structure

2. There are 4 term structures: Pure Expectation Theory (PET), Liquidity Premium Theory (LPM), Market Segmentation Theory (MST), Preferred Habitat Theory (PHT). Which term structure theories can be used to explain the shape of normal yield curves? What are the other implications of these theories?. Detailed explaination and examples are needed.

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