If liquidity and interest rate expectations are both important for explaining the shape of a yield curve,

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If liquidity and interest rate expectations are both important for explaining the shape of a yield curve, what does a flat yield curve indicate about the market's perception of future interest rates?

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Financial Markets and Institutions

ISBN: 978-1337099745

12th edition

Authors: Jeff Madura

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Question Posted: Oct 31, 2017 07:42 AM

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If liquidity and interest rate expectations are both important for explaining the shape of a yield curve,

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A flat yield curve without consideration of a liquidity premium would represent ...View the full answer

Financial Markets and Institutions

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