One-year rates are expected to be 0.4%, 1.0%, 1.8%, 2.2%, and 2.1% over the next five years,
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One-year rates are expected to be 0.4%, 1.0%, 1.8%, 2.2%, and 2.1% over the next five years, respectively. If investors demand a 20 bp liquidity premium,
what would you expect the interest rate to be on four-year bonds?
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