What is LP in banking?

Question

LP (Liquidity Premium):
Additional return required to compensate investors for purchasing illiquid assets. To calculate Liquidity Premium, one must find the average of past Treasury yield rates and subtract the current rate from that average to estimate the liquidity premium of investment.

GKToday Admin · Accepted Answer

Liquidity Premium  LP (Liquidity Premium):
Additional return required to compensate investors for purchasing illiquid assets. To calculate Liquidity Premium, one must find the average of past Treasury yield rates and subtract the current rate from that average to estimate the liquidity premium of investment.

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