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c) Assume that the market is dominated by people who wish to hold bonds of shorter maturity. Refer to the bond in part (b). Under

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c) Assume that the market is dominated by people who wish to hold bonds of shorter maturity. Refer to the bond in part (b). Under the liquidity preference hypothesis, would the price of the bond be higher or lower than the price you just calculated under the expectation hypothesis? Explain your answer. Points: 2

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