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Question 25 (1 point) According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to
Question 25 (1 point) According to the liquidity premium theory of the term structure of interest rates, if the one-year bond rate is expected to be 4%, 5%, and 6% over each of the next three years, what is the interest rate on a three-year bond if the liquidity premium on a three-year bond is 0.5%? 4% 5.5% 4.5% 5%
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