g Which one of the following statements is/are true? Multiple Choice A. If the expectation for inflation is that it will steadily increase, the term structure of interest rates will be upward sloping. B. If a small rural city issues municipal bonds and there is no active secondary market to sell the bonds, investors will require a higher liquidity premium compared to a bond with a very active secondary market. Both A and B are true. Neither A nor B are true.
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