ahalya

Kindly provide some of the Traditional Theories of the Term Structure.

I am preparing for my finals in the next month. i can't find the solution to this question.
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houhou
"Traditional Theories of the Term Structure: Expectations Theory: The term structure of interest rates reflects financial market beliefs about future interest rates. Market Segmentation Theory: Debt markets are segmented by maturity, so interest rates for various maturities are determined separately in each segment. Maturity Preference Theory: Long-term interest rates contain a maturity premium necessary to induce lenders into making longer term loans.. Source: http://in.docsity.com/en-docs/Interest_Rate_-_Security_Analysis_and_Portfolio_Management_-_Solved_Quiz_"
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ekvir
Conventional idea connected with salary dedication the idea which utilizes the instruments connected with demand and supply to go into detail variations in pay prices.
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