all opportunities for easy arbitrage profit have been exhausted

.short-run interest rates will be lower than long-run interest rates, holding the risk quality of assets constant

the existence of speculative asset price bubbles when interest rates approach zero

the nominal rate of interest is positive

Market makers require a bid-ask spread to offer their services at al

That maturity premiums increase with the term of a bond

A bond price represents the present discounted value of the payments agreed upon at the time when the bond was issued.

Capital markets are not efficient for long-maturity loans.

the asset price corresponds to its fundamental value

it levels off at a high Fisher asset price plateau

as long as traders believe that the bubble will continue to grow, validate market expectations, and offer the ’normal’ return

.prices rise

expectations of the value of assets in future periods are essential for understanding the value of assets in the present period

one economic actor’s asset is another’s liabilit

flows of assets are traded in large, well-organized international markets

lower risk premiums are necessary with increasing asset durability.

of risk aversion

of the bid-ask spread

there is no one willing to take an unnecessary risk.

existing risks are almost never perfectly negatively correlated with each other