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Suppose we observe the following rates: 1 R 1 = 0.90%, 1 R 2 = 1.40%, and E ( 2 r 1 ) = 0.925%.

Suppose we observe the following rates: 1R1 = 0.90%, 1R2 = 1.40%, and E(2r1) = 0.925%. If the liquidity premium theory of the term structure of risk-free rates holds, what is the liquidity premium for year 2, L2? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

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