The market segmentation theory allows for the possibility of a discontinuous yield curve.

Name: The market segmentation theory allows for the possibility of a discontinuous yield curve.
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The market segmentation theory suggests that the bond market is segmented on the basis of maturity, with investors having specific maturity preferences, which can lead to a discontinuous yield curve if there are gaps in demand for bonds of certain maturities.

The Market Segmentation Theory Allows for the Possibility of a Discontinuous