Question: Please Answer as soon as possible If the current one-year interest rate is 2.5% and the expected one-year rate next year is 2.9%, then, according

Please Answer as soon as possible

If the current one-year interest rate is 2.5% and the expected one-year rate next year is 2.9%, then, according to the liquidity premium theory, the annual interest rate on a 2-year bond will be: Question 11 options: 2.7%

2.9% minus the liquidity premium

2.9% plus the liquidity premium

2.7% plus the liquidity premium

2.7% minus the liquidity premium

Which of the following $1,000 face-value securities has the highest yield to maturity?

Question 12 options:


A)	a 5 percent coupon bond bought at $600

B)	a 5 percent coupon bond bought at $1,200

C)	a 4 percent coupon bond bought at $1,000

D)	a 5 percent coupon bond bought at $800

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