Question: Answer the Questions below with your own words please, 1. The 1-year T-bill rates over the next five years are expected to be 3%, 3.5%,

Answer the Questions below with your own words please,

1. The 1-year T-bill rates over the next five years are expected to be 3%, 3.5%, 4%, 4.5%, and 5%. If the 5-year T-bonds are yielding 7%, what is the liquidity premium on this bond?

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