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What is the liquidity premium for year 2

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Suppose we observe the following rates: 1R11R2E2r1 = 6.9%, = 7.8%, and () = 6.9%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2? (Round your intermediate calculations to 5 decimal places and final answer to 2 decimal places. (e.g., 32.16))

Reference no: EM132783181

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