Chartered Financial Analyst Level 2
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24 In contrast to the preferred habitat theory of the term structure of interest rates, the segmented market theory assumes that:
24 In contrast to the preferred habitat theory of the term structure of interest rates, the segmented market theory assumes that:
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Last updated: January 17, 2026 at 14:03A
borrowers and lenders have strong preferences for particular maturities.
B
investors will accept additional risk in return for additional expected returns.
C
yields are determined entirely by the supply and demand for funds of a particular maturity.
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