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Business, 03.05.2021 14:50 bwheele6791
The Wall Street Journal reports that the rate on three-year Treasury securities is 2.53 percent and the rate on four-year Treasury securities is 2.74 percent. The one-year interest rate expected in three years, E(4r1), is 3.22 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the four-year Treasury security, L4
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