|
Title: Liquidity preference theory suggests that when bond investors move from short-term securities to ... Post by: freezo1994 on Mar 21, 2022 Liquidity preference theory suggests that when bond investors move from short-term securities to long term securities
▸ they are expecting short-term rates to fall. ▸ they are expecting long-term rates to rise. ▸ they believe that they can earn a higher rate of return over the long term by buying bonds with longer maturities than they could by buying a series of short-term investments. ▸ they want to be protected from the risk of falling bond prices in the future. Title: Liquidity preference theory suggests that when bond investors move from short-term securities to ... Post by: cheezeh3ad on Mar 21, 2022 Content hidden
|