Question: 25. The table below shows current and expected future one-year interest rates as well as current interest rates on multiyear bonds. Use the table to

25. The table below shows current and expected future one-year interest

25. The table below shows current and expected future one-year interest rates as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. Year One-Year Bond Rate Multiyear Bond Rate 1 2% 2% 2 3% 3% 3 4% 5% 4 6% 6% 5 7% 8%

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