Suppose the central bank of turkey decides to buy back its, Financial Management

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Suppose the central bank of turkey decides to buy back its

Suppose the Central Bank of Turkey decides to buy back its short-term Turkish government bonds. What effect will this policy have on the value of Turkish Lira? :

1.The bonds yield to maturity will fall, which would strengthen the lira

2.The bonds yield to maturity will fall, which would weaken the lira .

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Financial Management: Suppose the central bank of turkey decides to buy back its

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