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    Exam 5: The Risk Structure and Term Structure of Interest Rates
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    Which of the Following Is NOT True of the Term
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Which of the Following Is NOT True of the Term

Question 60

Question 60

Multiple Choice

Which of the following is NOT true of the term premium?


A) It is zero under the expectations theory.
B) It is infinite under the segmented markets theory.
C) It increases as a bond's maturity increases.
D) It is zero for thirty-year bonds.

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