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Suppose we observe the following rates: 1R = 0.85%, 1 = 1.35%, and Er) = 0.923%. If the liquidity premium theory of the term structure
Suppose we observe the following rates: 1R = 0.85%, 1 = 1.35%, and Er) = 0.923%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2, 42? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Liquidity premium %
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