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Liquidity Theory of the Term Structure

Liquidity Theory of the Term Structure
Theory of biased expectations stating that implied forward rates will be an objective estimate of the expectations in the market, of future interest rates. This is because a liquidity premium is embodied within.

Related posts:

  1. Market Segmentation Theory or Preferred Habitat Theory
  2. Pure Expectations Theory
  3. Expectations Theory of Forward Exchange Rates
  4. Liquidity Premium
  5. Local Expectations Theory
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