The bootstrap method involves: A. Working from long maturity instruments to shorter maturity instruments determining zero rates at each step B. Calculating the par yield on a bond C. Working from short maturity instruments to longer maturity instruments determining zero rates at each step D. Calculating the expected future yield on a bond QUESTION 5 The liquidity preference theory of the term structure of interest rates argues that: A.Lenders prefer to lend long-term and borrowers prefer to borrow short-term B. Forward rates should equal the expected future zero rates C. The term structure should be downward sloping D. Forward rates should be greater than expected future zero rates