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Suppose we observe the following rates. A = 8 percent, R2 = 10 percent, and A21) = 8 percent. If the liquidity premium theory of

Suppose we observe the following rates. A = 8 percent, R2 = 10 percent, and A21) = 8 percent. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2.L2

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