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The market segmentation and preferred habitat theories of term structure Answer Question 3 answers are identical. vary in that market segmentation is...

The market segmentation and preferred habitat theories of term structure
Answer
Question 3 answers
are identical.
vary in that market segmentation is rarely accepted today.
vary in that market segmentation maintains that borrowers and lenders will not depart from their preferred maturities and preferred habitat maintains that market participants will depart from preferred maturities if yields on other maturities are attractive enough.
A and B.
B and C.

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