How does the interest rate on an illiquid bond compare with the interest rate on a liquid

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How does the interest rate on an illiquid bond compare with the interest rate on a liquid bond? How does the interest rate on a bond with high information costs compare with the interest rate on a bond with low information costs?

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Money, Banking, and the Financial System

ISBN: 978-0134524061

3rd edition

Authors: R. Glenn Hubbard, Anthony Patrick O'Brien

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Question Posted: Jan 03, 2019 07:53 AM

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How does the interest rate on an illiquid bond compare with the interest rate on a liquid

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Investors favor liquidity so a bond that is not liquid would have less demand compared to ...View the full answer

Money, Banking, and the Financial System

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