Question: QUESTION 10 Supply and demand analysis predicts that, other things remaining equal, a decrease in the liquidity of corporate bonds will corporate bonds andthe yield

 QUESTION 10 Supply and demand analysis predicts that, other things remaining

QUESTION 10 Supply and demand analysis predicts that, other things remaining equal, a decrease in the liquidity of corporate bonds will corporate bonds andthe yield of Treasury bonds, everything else held constant. the yield of increase; increase decrease; decrease increase; decrease decrease; increase QUESTION 11 Your investment portfolio includes both illiquid and liquid bonds. How does the interest rate on your illiquid bonds compare with the interest rate or your liquid bonds, other things remaining equal? Interest rates are usually the same on liquid and illiquid bonds. Interest rates are usually lower on an illiquid bond Interest rates are usually higher on an illiquid bond The bond rating is needed to determine the effect on interest rates. QUESTION 12 Municipal bonds are usually more attractive to investors who are in low marginal tax brackets. True False

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