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Predict the one-year interest rate one year from today if interest rates are 4% and 4.5% for bonds with one to two years to maturity
Predict the one-year interest rate one year from today if interest rates are 4% and 4.5% for bonds with one to two years to maturity and the respective liquidity premiums are 0% and 0.1%. Please remember to show your work and use any applicable formulas by hand.
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