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Bonds that have high liquidity premium are usually have

This question belongs to Commerce Financial Management
Financial Management
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Bonds that have high liquidity premium are usually have

Answer & Solution
Correct Answer: Option C
Bonds that have high liquidity premium are usually have less frequently traded. A bond is a fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental). A bond could be thought of as an I.O.U. between the lender and borrower that includes the details of the loan and its payments.
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