Which of the Following Is True of the Analysis of the Term

Multiple Choice

Which of the following is true of the analysis of the term structure of interest rates?​

A) ​It assumes that investors in long­term securities face high transaction costs.
B) ​It assumes that investors can predict short­term interest rates accurately.
C) ​It assumes that the yield curve is always flat.
D) ​It assumes that investors in bonds have a preferred habitat.