Question: 5 . ( POINTS: 1 0 ) Suppose a two year zero coupon bond with par value $ 1 0 0 0 is selling for

5.(POINTS: 10) Suppose a two year zero coupon bond with par value $1000 is selling for $845 today and this years short rate is 4%. The future is uncertain but the investors expect that next years short rate will be 5%. What is the implied liquidity premium?

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