Question: The expectations theory has difficulty explaining why yields on bonds of different maturities move together. has difficulty explaining why U . S . Treasury securities
The expectations theory
has difficulty explaining why yields on bonds of different maturities move together.
has difficulty explaining why US Treasury securities have lower yields than corporate bonds of the same
maturity.
has difficulty explaining why yield curves usually slope upward.
explains the three main facts about the term structure of interest rates.
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