The liquidity premium hypothesis also holds that issuers of bonds prefer to issue long-term bonds to lock

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The liquidity premium hypothesis also holds that issuers of bonds prefer to issue long-term bonds to lock in borrowing costs. How would this preference contribute to a positive liquidity premium?

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ISE Investments

ISBN: 9781260571158

12th International Edition

Authors: Zvi Bodie, Alex Kane, Alan Marcus

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Question Posted: Mar 13, 2024 05:00 AM

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The liquidity premium hypothesis also holds that issuers of bonds prefer to issue long-term bonds to lock

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