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Suppose we observe the following rates: 181 = 6.3%, 1A2 = 7.1%, and (221) = 6.3%. If the liquidity premium theory of the term structure
Suppose we observe the following rates: 181 = 6.3%, 1A2 = 7.1%, and (221) = 6.3%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 22 (Round your intermediate calculations to 5 decimal places and final answer to 2 decimal places. (e.g., 32.16)) Liquidity premium %
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