If bonds of different maturities are close substitutes, their interest rates are more likely to move together.

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“If bonds of different maturities are close substitutes, their interest rates are more likely to move together.” Is this statement true, false, or uncertain? Explain your answer.

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Financial Markets And Institutions

ISBN: 978-0132136839

7th Edition

Authors: Frederic S. Mishkin, Stanley G. Eakins

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Question Posted: Nov 12, 2012 01:09 AM

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If bonds of different maturities are close substitutes, their interest rates are more likely to move together.

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It is a very true statement Because when bonds of differe...View the full answer

Financial Markets And Institutions

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