According to the unbiased expectations theory,
a .markets are segmented and buyers stay in their own segment
b. liquidity premiums are negative and time varying
c. the term structure will most often be upward sloping
d .the long-term spot rate is an average of the current and expected future short-term interest rates
e. forward rates are less than the expected future spot rates

D .the long-term spot rate is an average of the current and expected future short-term interest rates

Explanation:

Unbiased Expectations Theory  -

According to this theory , it forecasts the short - term rate of interests of the future according to the current long - term rate of interests .

Which states that the investor gets the same interest amount during two consecutive one - year bond against investing in one two - year bond .

Hence , from the given statements , the correct statement regarding the unbiased expectations theory , is ( D. ) .

of the three mortgage options that demarco and tanya have to choose from, the balloon payment mortgage would be their best option, over adjustable payment and fixed payment plans.ultimately, the balloon payment plan would save demarco and tanya overall, in interest, would cost less monthly, and they would only have to make these payments for 8 years, opposing to 30 years for adjustable or fixed payment plans. 

overall, demarco and tanya would save $80,811 if they chose balloon payments over fixed payments, and would save $116,711 if they choose balloon payments over adjustable payments. benefits with choosing fixed payments over adjustable payments is that, in the end, the payments will still be $836.30 a month, while with adjustable payments, the initial monthly payments will be $763.38 to $1082.70 a month, ultimately leading to a more costly purchase. benefits with choosing fixed payments over balloon payments are not present. benefits in choosing adjustable payments over is that it has a lower interest rate, and starts with lower monthly payments initially. benefits in choosing adjustable payments over balloon payments include a lower interest rate, and lower initial monthly payments. benefits in choosing balloon payments over fixed payments include lower interest rates, lower overall price, lower monthly payments, takes less time to pay off, and does not require a downpayment. benefits in choosing balloon payments over adjustable payments include, lower monthly payments (when averaged), takes less time to pay off, and lower overall price.

hence, option c, balloon payments, is the best option for demarco and tanya to make this purchase, for it will save them a minimum of $80811, and a maximum of $116,711.