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QUESTIONS Suppose that the term premium is 2 basis points per month of maturity. If the yield curve is flat between 1 year and 5

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QUESTIONS Suppose that the term premium is 2 basis points per month of maturity. If the yield curve is flat between 1 year and 5 years, then the short-term interest rate is expected to remain constant over the next 5 years. True or false? O a. True b. False

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