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For this question (i)Summarize the three major facts of term structure of interest rates. (ii)Explain how the Liquidity Premium Theory explains these facts. (iii)Use local

For this question

(i)Summarize the three major facts of term structure of interest rates.

(ii)Explain how the Liquidity Premium Theory explains these facts.

(iii)Use local examples to indicate that these facts hold in reality.

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