What is the liquidity premium for the third year

Reference no: EM13284086

One year spot rate is 6%, 2nd year forward rate is 7.5% and 3rd year forward rate is 12.3%. Assume liquidity premium for the second year is 0.5% and three year fixed rate is 9%. What is the liquidity premium for the third year?

Reference no: EM13284086

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