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A 1-year T-bond rate is currently 2% and a 1-yr rate in 12 months is expected to be 3%. Theres a liquidity premium of 0.35%
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A 1-year T-bond rate is currently 2% and a 1-yr rate in 12 months is expected to be 3%. Theres a liquidity premium of 0.35% on the latter bond. What should a 2-yr rate currently be?
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
11th Global Edition
1292094184, 978-1292094182
