Explain (in no more than two paragraphs for each) which of the following statements are true or false.

A. The traditional liquidity premium theory states that long-term interest rates are greater than the average of current and expected future short-term interest rates

.B. According to the market segmentation theory, short-term investors will not normally switch to intermediate- or long-term investments.

C. According to the liquidity premium theory, investors preferring long-term bonds over short-term bonds would require lower liquidity premium.