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Suppose that your preferred habitat is in short-term bonds with a liquidity premium on 2-year bonds of 0.25%, if the interest rate for this year
Suppose that your preferred habitat is in short-term bonds with a liquidity premium on 2-year bonds of 0.25%, if the interest rate for this year on a 1-year bond is 5% and todays interest rate on a 2-year bond is 5.75%, what is your next years expected interest rate on a 1-year bond?
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