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Explain what we expect would happen to the current equilibrium yield on 10-year Corporate bonds if there was a sudden increase in the liquidity of
Explain what we expect would happen to the current equilibrium yield on 10-year Corporate bonds if there was a sudden increase in the liquidity of these corporate bonds, all else being held constant. Make sure to be clear if either bond demand, bond supply, or both will shift in your graphical analysis. Clearly indicate any shifts of demand and/or supply, and what happens to prices and yields. Please either use the provided graph or reproduce the graph carefully.
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