Suppose we observe the following rates 1r1 10 1r2 16 and e
Suppose we observe the following rates: 1R1= .10, 1R2= .16, and E (2r1) = .10. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2?
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suppose we observe the following rates 1r1 10 1r2 16 and e 2r1 10 if the liquidity premium theory of the term
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