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Business, 26.11.2019 23:31 english7750

The wall street journal reports that the rate on three-year treasury securities is 4.75 percent and the rate on four-year treasury securities is 5.00 percent. the one-year interest rate expected in three years is e(4r1), 5.25 percent. according to the liquidity premium theory, what is the liquidity premium on the four-year treasury security, l4?
0.0375 percent0.504 percent5.01 percent5.04 percent

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