Assertion: long term interest rate | /r/CapableOf | reflect investorsassumptions
Facets:
value: about future interest rates
type: OTHER
Source sentences:
text: The liquidity premium theory asserts that long-term interest rates not only reflect investors' assumptions about future interest rates but also include a premium for holding long-term bonds (investors prefer short term bonds to long term bonds), called the term premium or the liquidity premium.