You are considering purchasing a 10-year bond and follow the theory of rational expectations. If you have
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You are considering purchasing a 10-year bond and follow the theory of rational expectations. If you have just read the annual report of the central bank in your country that states interest rates are higher than expected, will you buy the bond today or in the next month?
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Related Book For 
The Economics Of Money Banking And Financial Markets
ISBN: 9781292268859
12th Global Edition
Authors: Frederic S. Mishkin
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