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1. The Liquidity Premium is the same as the Liquidity Risk Premium. True or False 2. If you were going to measure the default risk

1. The Liquidity Premium is the same as the Liquidity Risk Premium.

True or False

2. If you were going to measure the default risk premium you would ______

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- examine the interest rate difference between short term and long term Treasury securities.

- examine the interest rate difference between corporate bonds and Treasuries that have the same maturity.

- examine the difference between TIPS (Treasury Inflation Protected Securities) and a Treasury bond.

- Credit Default Swaps

3. The Maturity Risk Premium is the same as the Liquidity Risk Premium.

True or False

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