Under liquidity premium theory if todays one-year spot rate


Under the Liquidity Premium Theory, if today's one-year spot rate is 1%, today's two-year spot rate is 1.5%, and the liquidity premium on a 2-year bond is .2% (assume the liquidity premium on a one year bond is 0), what would be the expected forward one-year rate in one year?

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Financial Management: Under liquidity premium theory if todays one-year spot rate
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