Short-term (one-year) interest rates over the next 3 years are expected to be 2%, 3%, and 3.55%.

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Short-term (one-year) interest rates over the next 3 years are expected to be 2%, 3%, and 3.55%. If you are ready to buy a three-year bond that yields 3%, what is your minimum required liquidity premium for this period?

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Financial Markets And Institutions

ISBN: 9780138043681

10th Edition

Authors: Frederic S Mishkin, Stanley Eakins

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