Which of the following theories of the term structure is (are) able to explain the fact that interest rates on bonds of different maturities tend to move together over time?

Of the four theories that explain how interest rates on bonds with different terms to maturity are related, the one that assumes that bonds of different maturities are not substitutes for one another is the ________

The instruments traded in money markets have some common features, including ( ). A: more liquid and safer B: low default risk and low yields C: short-term maturities D: large denominations

According to the market segmentation theory of the term structure,________ A: the interest rate for bonds of one maturity is determined by supply and demand for bonds of that maturity. B: bonds of one maturity are not substitutes for bonds of other maturities; therefore, interest rates on bonds of different maturities do not move together over time. C: investors' strong preference for short-term relative to long-term bonds explains why yield curves typically slope upward. D: all of the above. E: none of the above.

Which of the following statements regarding Treasury bills (T-bills) is TRUE T-bills: A: have maturities greater than 6 months and can be sold at a price greater than par. B: are considered the risk-free instrument, which means there exists no interest rate risk. C: carry no coupon.