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  3. which of the following statements is correct?

Which of the following statements is correct? a. According to the...

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Finance

Which of the following statements is correct?

a. According to the market segmentation theory, the yield curve is expected to slope downward.
b. If the inflation is expected to decrease in the future, then the yield curve should have an upward slope.
c. The probability of default is higher on short-term bonds than on long-term bonds.
e. Reinvestment rate risk is lower, other things held constant, on long-term than on short-term bonds.

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