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Ouestion 6 Average Interest rate for two year bond is 6% and liquidity premium one to two year bond is - 0%, 0.5%. what is

Ouestion 6

Average Interest rate for two year bond is 6% and liquidity premium one to two year bond is - 0%, 0.5%. what is the interest rate on 2 year bond as per

the liquidity premium theory?

O A. 6.5%

O B. 5.5%

0 C5%

O D.7%

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