What should happen to a securitys equilibrium interest rate as the securitys liquidity risk increases?

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What should happen to a security’s equilibrium interest rate as the security’s liquidity risk increases?

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Finance Applications and Theory

ISBN: 978-0077861681

3rd edition

Authors: Marcia Cornett, Troy Adair

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Question Posted: Sep 23, 2014 10:28 AM

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What should happen to a securitys equilibrium interest rate as the securitys liquidity risk increases?

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The interest rate on a security reflects its relative li...View the full answer

Finance Applications and Theory

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