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(Ch.6 Structure of Interest Rates) State whether you agree or disagree with the statement below. Explain you answer. Assuming a positive liquidity premium for holding
(Ch.6 Structure of Interest Rates) State whether you agree or disagree with the statement below. Explain you answer. "Assuming a positive liquidity premium for holding long-term securities, long-term interest rates would always be higher than short-term interest rates on otherwise similar securities." (Maximum 3 sentences, maximum 100 words.)
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