Question: 5. The table below gives current information on the interest rates for two 2-year and two 8-year maturity investments and info on the maturity, liquidity,

5. The table below gives current information on the interest rates

5. The table below gives current information on the interest rates for two 2-year and two 8-year maturity investments and info on the maturity, liquidity, and default risk characteristics. Investment Liquidity Default Risk Interest Rate Maturity (in Years) 12 2 7 8 8 High Low Low High Low Low Low Low Low High 2.0 2.5 R3 4.0 6.5 Calculate the liquidity premium using the rates from Investment 1 and Investment 2. Estimate the default risk premium

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