True/False
The preferred habitat theory asserts that, to the extent that the demand and supply of funds in a given maturity range does not match, some lenders and borrowers will be induced to shift to maturities showing the opposite imbalances.
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q36: As quoted on a bond equivalent basis,
Q37: More recently market participants have come to
Q38: The correct way to think about bonds
Q39: According to the _, the forward rates
Q40: The market prices its expectations of future
Q42: Describe the three generic shapes that have
Q43: It is important to remember that the
Q44: If we assume an initially flat term
Q45: Given the spot rates, the theoretical value
Q46: As quoted on a bond equivalent basis,