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1 . Using both the supply and demand for bonds and liquidity preference frameworks, show how interest rates are affected when the riskiness of bonds
Using both the supply and demand for bonds and liquidity preference frameworks, show how
interest rates are affected when the riskiness of bonds rises. Are the results the same in the two
frameworks? Chapter
The demand curve and supply curve for oneyear discount bonds with a face value of $
are represented by the following equations Chapter
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