Question: If forward interest rate increases while neither current short-term nor expected future short-term zero rates change, which of the following theories of term structure of
If forward interest rate increases while neither current short-term nor expected future short-term zero rates change, which of the following theories of term structure of interest rates MUST be violated?
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| Expectation theory |
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| Market segmentation theory |
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| Liquidity preference theory |
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| At least two of the above answers are correct |
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| None of the above |
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