Liquidity Premium v Illiquidity Premium
under the bottom up approach, the wiki says to adjust the risk free rate for liquidity premium, how come some examples call this the illiquidity premium? which term is correct? is there a difference?
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under the bottom up approach, the wiki says to adjust the risk free rate for liquidity premium, how come some examples call this the illiquidity premium? which term is correct? is there a difference?
Comments
They are the same thing