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Based on the liquidity premium theory, the expected 1-year spot rate in the future should be A. Lower than the 1-year foward rate for long-term

Based on the liquidity premium theory, the expected 1-year spot rate in the future should be A. Lower than the 1-year foward rate for long-term bonds. B. Higher than C. Equal to D. Higher or lower than, depending on the YTM

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