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Describe the expectation hypothesis

Describe the expectation hypothesis

Answers

Dana
The expectation hypothesis states that if the short term bond yields are expected to rise over time then the long term bond yields would exceed the short term bond yields. In contrast if the short term bond yields are expected to fall over time then the long term bond yields are lower than the short term bond yields
Dana05 answered the question on July 18, 2019 at 19:30

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