Question: Question 9 : ( 1 0 pts ) Suppose we observe the following rates: 1 R 1 = 1 2 % , 1 R 2

Question 9: (10 pts) Suppose we observe the following rates: 1R1=12%,1R2=15%, and (21)=
14%. If the LPT holds, what is the liquidity premium for year 2?

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