Suppose that the expected value of the interest rate for year 3 remains at 8% but that

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Suppose that the expected value of the interest rate for year 3 remains at 8% but that the liquidity premium for that year is also 1%. What would be the yield to maturity on three-year zeros? What would this imply about the slope of the yield curve?

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Essentials Of Investments

ISBN: 9780073368719

7th Edition

Authors: Zvi Bodie, Alex Kane, Alan J. Marcus

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