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Suppose we observe the following rates: R1 = 6.9%, R2 = 7.8%, and E(211) = 6.9%. If the liquidity premium theory of the term structure

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Suppose we observe the following rates: R1 = 6.9%, R2 = 7.8%, and E(211) = 6.9%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2? (Round your intermediate calculations to 5 decimal places and final answer to 2 decimal places. (e.g., 32.16)) Answer is complete but not entirely correct. Liquidity premium 1.21 %

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