Question
The one-year interest rate over the next 10 years will be 1.5%, 2.0%, 2.5%, 3%, 3.5%, 4%, 4.5%, 5%, 5.5%, 6%. If you are ready
The one-year interest rate over the next 10 years will be 1.5%, 2.0%, 2.5%, 3%, 3.5%, 4%, 4.5%, 5%, 5.5%, 6%. If you are ready to buy an eight-year bond that yields 5.25%, what is your minimum required liquidity premium for this period?
| 0.75% | ||
| 1.5% | ||
| 1.25% | ||
| 2.0% | ||
| 1.0% |
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Economics For Investment Decision Makers
Authors: Sandeep Singh, Christopher D Piros, Jerald E Pinto
1st Edition
1118111966, 9781118111963
