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Discuss the effect of an increase in the riskiness of bonds (relative to other assets) on...

Discuss the effect of an increase in the riskiness of bonds (relative to other assets) on the interest rate. Perform separate analyses--explain in detail the market effects, which should include a description of graphical analyses--using the bonds market and the liquidity preference framework (money market). Do your separate analyses reach the same conclusion? Notice: You should not submit the graphs.

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