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Please mark the only INCORRECT statement about bonds and the yield curve a. forward rates are determined by investors' expectations of future interest rates. b.

image text in transcribed Please mark the only INCORRECT statement about bonds and the yield curve a. forward rates are determined by investors' expectations of future interest rates. b. According to the liquidity preference theory, the market demands a "premium" to hold longer maturity bonds c. a coupon bond can be seen as a portfolio of zero-coupon bonds of different maturities d. zero coupon bonds trade at a premium until they reach PAR at maturity

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