Briefly explain why bonds of different maturities might have different yields according to the expectations and liquidity

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Briefly explain why bonds of different maturities might have different yields according to the expectations and liquidity preference hypotheses. Briefly describe the implications of each hypothesis when the yield curve is (1) upward-sloping and (2) downward-sloping. P-639

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ISE Investments

ISBN: 9781266085963

13th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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