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__________ Suggests That the Long-Term Interest Rate Is the Geometric

Question 23

Multiple Choice

__________ suggests that the long-term interest rate is the geometric average of the present short-term rate and the short-term rates expected to prevail over the term to maturity of the long-term security.


A) The term structure of interest rates
B) The geometric average theory
C) The expectations theory
D) The preferred habitat theory

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