The segmented markets theory suggests that although investors and borrowers may normally concentrate on a particular natural maturity market, certain events may cause them to wander from it.

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The segmented markets theory suggests that the bond market is divided into segments based on the maturity of the bonds, and investors typically stay within a particular segment and do not wander from it, even in response to certain events.

The Segmented Markets Theory Suggests That Although Investors and Borrowers