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Suppose we observe the following rates: _(1)R_(1)=4.1%,_(1)R_(2)=4.9% , and E(_(2)r_(1))=4.1% . If the liquidity premium theory of the term structur of interest rates holds, what
Suppose we observe the following rates:
_(1)R_(1)=4.1%,_(1)R_(2)=4.9%
, and
E(_(2)r_(1))=4.1%
. If the liquidity premium theory of the term structur of interest rates holds, what is the liquidity premium for year 2 ? (Round your intermediate calculations to 5 decimal places and fina percentage answer to 2 decimal places. (e.g., 32.16))\ Liquidity premium for year 2\
%
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