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Business, 26.03.2020 20:01 becddjr

Maturity Premiums. Investments in long-term government bonds produced a negative average return during the period 1977–1981. How should we interpret this? Did bond investors in 1977 expect to earn a negative maturity premium? What do these 5 years of bond returns tell us about the normal future maturity premium? (LO11-1

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