According to the liquidity premium hypotheses what is the


The Wall Street Journal reports that the rate on three-year Treasury securities is 2.63 percent and the rate on four-year Treasury securities is 2.84 percent. The one-year interest rate expected in three years, E(4r1), is 3.31 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the four-year Treasury security, L4?

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Financial Management: According to the liquidity premium hypotheses what is the
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