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Today is t equals 0. The tables below shows the expected interest rate on a one-year bond and the liquidity premiums for one- to five-year
Today is t equals 0. The tables below shows the expected interest rate on a one-year bond and the liquidity premiums for one- to five-year bonds. Recall that i subscript n comma t end subscript superscript e represents the expected interest rate of an n-year bond at time t, and l subscript n comma t end subscript is the liquidity premium of an n-year bond at time t. i subscript 1 comma t end subscript i subscript 1 comma t
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