Consider a mean-variance optimizer that wants to invest in bonds for two periods.

in order for them to be indifferent between the two year bonds and rolling over two one year bonds, what must the liquidity premium equal?

what if the want to invest in n periods and are indifferent between the n period bond and an n ?

1 period bond rolled over into a one period bond?

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This question seems like it should be quite hard although it reall just wants you to subtract.92-8.7=83.3