The liquidity premium is included in calculations of the yield curve to account for interest rate risk.
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Q1: No government agency has ever defaulted on
Q3: A change in the relative return of
Q4: An increase in household wealth increases the
Q5: , a junk bond has a lower
Q6: A change in the risk of a
Q7: A CCC bond has higher interest rate
Q8: A change in the profit opportunities of
Q9: The liquidity premium is included in calculations
Q10: Government bonds are more liquid than corporate
Q11: If a positive liquidity premium is included
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