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Based on economists forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: R1=
Based on economists forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: R1= 1.55% E(r12)= 2.45% L2= 0.07% E(r13)= 2.85% L3= 0.09% E(r14)= 3.30% L4= 0.14% Using the liquidity premium theory, determine the current (long-term) rates
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International Finance Theory And Policy
Authors: Paul Krugman, Maurice Obstfeld, Marc Melitz
12th Global Edition
1292417005, 978-1292417004
