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(I)If a Corporate Bond Becomes Less Liquid,the Interest Rate on the Bond

Question 84

Multiple Choice

(I) If a corporate bond becomes less liquid,the interest rate on the bond will fall.
(II) If a corporate bond becomes less liquid,the interest rate on Treasury bonds will fall.


A) (I) is true, (II) false.
B) (I) is false, (II) true.
C) Both are true.
D) Both are false.

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