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kolitchko kolitchko
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6 years ago
The liquidity premium theory holds that investors
A) always choose the bond with the highest expected return, regardless of maturity.
B) require a term premium to compensate them for investing in a less preferred maturity.
C) view bonds of different maturities as perfect substitutes.
D) view bonds of different maturities as completely unsubstitutable.
Textbook 
Money, Banking, and the Financial System

Money, Banking, and the Financial System


Edition: 3rd
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vehmeinvehmein
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kolitchko Author
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6 years ago
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Correct Slight Smile TY
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Brilliant ツ
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