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  3. chapter 10 bond prices and yields 317 suppose that

Chapter 10 Bond Prices and Yields 317 Suppose that the expected value of the interest...

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Chapter 10 Bond Prices and Yields 317 Suppose that the expected value of the interest rate for year 3 remains at 8% but that the liquidity premium for that year is also 1%. What would be the yield to maturity on three-year zeros? What would this imply about the slope of the yield curve? CONCEPT check 10.8

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