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QUES 2. If the 1-year rate is currently 3%, and the 2-year rate is 4.5%, what is the expected 1-year rate a year from now

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QUES 2. If the 1-year rate is currently 3%, and the 2-year rate is 4.5%, what is the expected 1-year rate a year from now if the liquidity preference theory holds and the liquidity premium for the 2-year rate is 0.5%? (Assume that the liquidity premium for the 1-year rate is 0.0%)

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