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Say that one-year interest rates over the next 4 years are expected to be 5% the first year,7% the second year,9% the third year and
Say that one-year interest rates over the next 4 years are expected to be 5% the first year,7% the second year,9% the third year and 10% the fourth year. If the yield on a three year bond is 8%, then what is the liquidity premium on this bond
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