Which One of the Following Statements Concerning the Modern Fixed-Income

Which one of the following statements concerning the modern fixed-income market is correct?

A) Pension funds generally have a preference for short maturities.
B) Current maturity preference theory states that both borrowers and lenders prefer short maturities.
C) Market segmentation theory does little to explain the modern fixed-income market.
D) The major borrower in the modern market borrows primarily on a long-term basis.
E) Institutional investors tend to invest in only one maturity range.

Correct Answer:

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