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    Financial Markets and Institutions Study Set 1
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    Exam 5: How Do Risk and Term Structure Affect Interest Rates?
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    The Risk Premium on Corporate Bonds Becomes Smaller as the Liquidity
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The Risk Premium on Corporate Bonds Becomes Smaller as the Liquidity

Question 22

Question 22

True/False

The risk premium on corporate bonds becomes smaller as the liquidity of the bonds falls.

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