Assume that as of today the annualized two-year interest is, Ask an Expert

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Assume that as of today, the annualized two-year interest is 5.5%, the one-year interest rate is 3.2% and the liquidity premium of a two-year security is 0.25%. Based on the Liquidity premium theory, what is the estimate of the one-year forward rate one-year from now?

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Financial Management, Finance

Category:- Financial Management
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