According to where the 1year forward rate in 2 years is steeper than the spot rate curve, what is the 1year forward rate in 2 years based on the liquidity premium of 0.75%?
In the scenario where the 1year forward rate in 2 years is steeper than the spot rate curve, the 1year forward rate in 2 years is 1.50%, based on the liquidity premium of 0.75%.