One-year T-bill rates over the next five years are expected to be 4%, 5%, 6%, 6.5%, and

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One-year T-bill rates over the next five years are expected to be 4%, 5%, 6%, 6.5%, and 8%. If fiveyear T-bonds are yielding 35.5%, what is the liquidity premium on this bond?

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Financial Markets And Institutions

ISBN: 9781292215006

9th Global Edition

Authors: Stanley Eakins Frederic Mishkin

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