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Assume the following interest rate path: year 1:2%; year 2:5%; year 3:7%; year 4:8%; year 5: 1%. If a 4 year liquidity premium is currently
Assume the following interest rate path: year 1:2%; year 2:5%; year 3:7%; year 4:8%; year 5: 1%. If a 4 year liquidity premium is currently 2%, what should be the 4 -year interest rate according to the liquidity premium theory? Select one: a) 7.5% b) 3.5% c) 5.5% d) 9.5%
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