Question
The liquidity premium on a 2-year bond over a 1-year bond is 1%. Current interest rates on 1-year treasury is 3%- and 2-year treasury is
The liquidity premium on a 2-year bond over a 1-year bond is 1%. Current interest rates on 1-year treasury is 3%- and 2-year treasury is 1%. What do people expect the return on a 1-year treasury will be next year?
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Principles of Microeconomics
Authors: N. Gregory Mankiw
8th edition
1305971493, 978-1305971493
