Question
Assume that, as of today, the annualized two-year interest rate is 2.6 percent , while the one-year interest rate is 2 percent and the one-year
Assume that, as of today, the annualized two-year interest rate is 2.6 percent, while the one-year interest rate is 2 percent and the one-year forward rate is 2.75 percent. How many percent is the liquidity premium on the two-year premium on the two-year security?
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Future Storm
Authors: Robin Griffiths ,William Houston
1st Edition
1906659478, 978-1906659479
