The theory that argues that individual investors and financial institutions have specific maturity preferences is called the

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The market segmentation theory suggests that the bond market is segmented on the basis of the maturity of the bonds, and that the interest rates for each segment are determined by the supply and demand for bonds within that segment. It argues that investors have specific maturity preferences, which influence their investment choices and the interest rates of different bond maturities.

The Theory That Argues That Individual Investors and Financial Institutions