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1 Structure of Interest Rates) State whether you agree or disagree with the statement below. Explain you answer. Assuming no liquidity premium for holding long-term
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Structure of Interest Rates) State whether you agree or disagree with the statement below. Explain you answer. "Assuming no liquidity premium for holding long-term securities, long-term interest rates would always be the same as short-term interest rates on otherwise similar securities (i.e., the yield curve will always be flat)." (Maximum 3 sentences, maximum 100 words.)
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