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Under the liquidity premium theory, what is the liquidity premium for years 10 to 20 (it will be the same for that period) if: (10
Under the liquidity premium theory, what is the liquidity premium for years 10 to 20 (it will be the same for that period) if: (10 points) inflation is expected to remain at 2% forever; r* is 0.50% for all maturities; the 10 year rate is 2.50%; and the 20 year rate is 2.85%.
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