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If we know that one-year interest rate over the next three years are 1%,2%, and 3%, and that investors have preferences for holding short-term bonds,

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If we know that one-year interest rate over the next three years are 1%,2%, and 3%, and that investors have preferences for holding short-term bonds, so liquidity premium for one-to three-year bonds: 0%,0.25%, and 0.5%. What is the interest rate on the two-year bond according to liquidity premium theory? 1.25% 1.75% 1.5%

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