Question: Question 10 0 / 1 pts If a one - year bond currently yields 5% and is expected to yield 7% next year , the

 Question 10 0 / 1 pts If a one - year

bond currently yields 5% and is expected to yield 7% next year

Question 10 0 / 1 pts If a one - year bond currently yields 5% and is expected to yield 7% next year , the liquidity premium theory predicts that the yield today on a two - year bond should be 0 5% . YOU Answered () less than 6% , but more than 5% . 0 6% . Correct Answer () more than 6%

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