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According to the preferred habitat theory: Investors could be convinced to buy securities with a longer maturity than their goal, but they would need a
According to the preferred habitat theory:
- Investors could be convinced to buy securities with a longer maturity than their goal, but they would need a higher yield to compensate them for risk.
- Borrowers could be convinced to issue bonds with a longer maturity than their needs, but they would need to pay a lower yield to compensate them for risk.
- Investors could also be convinced to buy securities with a shorter maturity than their goal, but they would need a higher yield to compensate them for risk.
- Borrowers could be convinced to issue bonds with a shorter maturity than their needs, but they would need to pay a lower yield to compensate them for risk.
Which of these choices correspond to the risks described by statements 1 to 4?
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Lords Of Finance The Bankers Who Broke The World
Authors: Liaquat Ahamed
1st Edition
0143116800, 978-0143116806
