if the extra interest cost of borrowing long-term is less than the expected cost of rising interest rates before it retires its debt.
B.
if the extra interest cost of borrowing short-term due to rising interest rates does not exceed the expected premium that is paid for borrowing long term.
C.
if short-term interest rates are expected to decline during the term of the debt.
D.
if long-term interest rates are expected to decline during the term of the debt.
【单选题】The ________ of the term structure of interest rates states that the interest rate on a long-term bond will equal the average of short-term interest rates that individuals expect to occur over the lif...
【判断题】According to the expectations theory, the interest rate on a long - term bond is the average of the short - term interest rates expected over the life of the long - term bond.
【单选题】According to the expectations theory of the term structure, the interest rate on a long-term bond will equal the ________ of the short-term interest rates that people expect to occur over the life of ...