Anonymous
Anonymous asked in Social ScienceEconomics · 1 year ago

Explain expectations theory (yield curve)?

Hello, okay so, I'm a bit confuse here.. do investors use this theory to predict long term bond interest rate using the current short term bond interest rates or vice versa? Thank you in advance!

1 Answer

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  • Oiy
    Lv 6
    1 year ago
    Favourite answer

    Yes, long term yield should exceed the short term one. On the contrary, it will be the time to jump off the ship.

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