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assuming a liquidity preference on 2-year bond is 0.25% the interest rate for this year on a 1 year bond is 5% and the expected
assuming a liquidity preference on 2-year bond is 0.25% the interest rate for this year on a 1 year bond is 5% and the expected interest rate on a 1 year bond un year 2 is 7.00% what is the yield rate of two year bond accounting to the liquidity premium theory.
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