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2. The following table depicts the yield curve and one year expected yields on bonds of various maturities. Use the table to calculate the liquidity
2. The following table depicts the yield curve and one year expected yields on bonds of various maturities. Use the table to calculate the liquidity premiums for the bond maturities. Time to maturity Multi-year return Liquidity premium 2% 2% 4% 5% 7% 8% 10% 11% 12% 10%
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