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Suppose we observe the following rates: ? 1 R 1 = 4 . 4 % , ? 1 R 2 = 5 . 1 %
Suppose we observe the following rates: and If the liquidity premium theory of the term structure
of interest rates holds, what is the liquidity premium for year Round your intermediate calculations to decimal places and final
percentage answer to decimal places. eg
This is a numeric cell, so
please enter numbers only.
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