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

Question 9: (10 pts) Suppose we observe the following rates: ?1R1=12%,?1R2=15%, and E(2r1)=14%. If the LPT holds, what is the liquidity premium for year 2?
Question 9 : ( 1 0 pts ) Suppose we observe the

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