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The yield on a 1 - year Treasury bond is 4 . 4 % and is expected to remain the same over the next year.

The yield on a

1 -

year Treasury bond is

4.4 %

and is expected to remain the same over the next year. The

2 -

year Treasury bond is currently selling for $

908 .

Given the expectations of stable yields, what is the liquidity premium?

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