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Investments in long-term government bonds produced a negative average return during the period 19771981. How should we interpret this? Did bond investors in 1977 expect

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Investments in long-term government bonds produced a negative average return during the period 19771981. How should we interpret this? Did bond investors in 1977 expect to earn a negative maturity premium? What do these 5 years' bond returns tell us about the normal future maturity premium? 12. Risk Premiums. What will

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