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Describe the following aspects of the liquidity premium: (a) When could the liquidity premium turn negative? (b) What happens to the liquidity premium as a

Describe the following aspects of the liquidity premium: (a) When could the liquidity premium turn negative? (b) What happens to the liquidity premium as a result of greater volatility in short-term interest rates? (c) What bias does it impart to the slope of the yield curve, and why? (d) Will the liquidity premium always keep long rates higher than short rates? Explain

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