Question: Help thank you Question 24 (2.5 points) The risk structure of interest rates are partly explained by tax treatment of the asset O true false

Help thank you Question 24 (2.5 points) The risk structure of interest rates are partly explained by tax treatment of the asset O true false Question 26 (2.5 points) Assume that in 2019 nominal interest

Help thank you rate on a one year bond is 2% and in 2020 it

Question 24 (2.5 points) The risk structure of interest rates are partly explained by tax treatment of the asset O true false Question 26 (2.5 points) Assume that in 2019 nominal interest rate on a one year bond is 2% and in 2020 it is expected to be 4% and the risk premium on the bond is 0.03%. Based on the "liquidity premium theory" in 2019 interest rate on a two year bond should be, 04.03% 03.03% O5% 06% Question 28 (2.5 points) Assume that in 2019 nominal interest rate on a one year bond is 2% and in 2020 it is expected to be 4% and the risk premium on the bond is 0.03%. Based on the "expectations theory" in 2019 interest rate on a two year bond should be, 04.03% 03% 04% 06% Question 32 (2.5 points) Assume that a one-year bond currently pays 5% interest. It's expected that it will pay 4.5% next year and 4% the following year. The two-year term premium is 0.2% while the three-year term premium is 0.35%. What is the interest rate on a 3 year bond according to the liquidity premium theory? 4.87% 04% 4.5% 4.85%

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