Economics Homework Help

Need help with my Finance question – I’m studying for my class.

Watch the following two videos:

• Level II CFA: Traditional Theories of the Term Structure of Interest Rates Demystified (Links to an external site.)
• Modern Term Structure Models Demystified (Links to an external site.)

For this discussion, choose one of the following traditional interest rate theories to discuss:

• Local Expectations Theory
• Liquidity Preference Theory
• Segmented Markets Theory
• Preferred Habitat Theory

In the post, describe the underlying economic factors that the theory indicates impacts the shape of the yield curve. Additionally, identify one strength and one weakness of the theory.