InvestorQ : How do I understand this term structure of rates better?
Niraj Mehta made post

How do I understand this term structure of rates better?

Answer
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Niraja Mehta answered.
1 year ago


Several theories have been proposed to explain the relationship between the maturities of bonds and the rates paid by these bonds. There are 3 broad theories of relevance:

§ Expectations theory

§ Liquidity premium theory

§ Market segmentation theory