The Canadian government offers some of its debt as Real Return Bonds, in which the price of
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The Canadian government offers some of its debt as Real Return Bonds, in which the price of bonds is adjusted for inflation over the life of the debt instrument. Real Return Bonds are traded on a much smaller scale than nominal Canada bonds of equivalent maturity. What can you conclude about the liquidity premium between Real Return Bonds and nominal Canada bonds?
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Since Real Return bonds are traded much more lightly than their nominal counterparts demand for ...View the full answer
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Related Book For 
The Economics of Money Banking and Financial Markets
ISBN: 978-0321785701
5th Canadian edition
Authors: Frederic S. Mishkin, Apostolos Serletis
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