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The interest rate on a 5-year treasury strip is 8%, and the interest rate on a 6-year treasury strip it 8.39%. Investors belleve that the
The interest rate on a 5-year treasury strip is 8%, and the interest rate on a 6-year treasury strip it 8.39%. Investors belleve that the one-year T-bill rate for year six will be 9.5%. What is the implied liquidity risk premium? Answer as a percent. Numeric Response
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