According to the liquidity premium theory,investors preferring long-term bonds over short-term bonds would require lower liquidity premium.

Name: According to the liquidity premium theory,investors preferring long-term bonds over short-term bonds would require lower liquidity premium.
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The liquidity premium theory suggests that investors require a higher liquidity premium for holding long-term bonds compared to short-term bonds due to the greater risk and lower liquidity of long-term bonds.

According to the Liquidity Premium Theory,investors Preferring Long-Term Bonds Over