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Determine which of the following financial statements is CORRECT? O Most evidence suggests that the maturity risk premium is zero. O Liquidity premiums are higher

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Determine which of the following financial statements is CORRECT? O Most evidence suggests that the maturity risk premium is zero. O Liquidity premiums are higher for Treasury than for corporate bonds. O The pure expectations theory states that the maturity risk premium for long-term Treasury bonds is zero and that differences in interest rates across different Treasury maturities are driven by expectations about future interest rates O The yield on a 3-year Treasury bond cannot exceed the yield on a 10-year Treasury bond. The real risk-free rate is higher for corporate than for Treasury bonds

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