Q6. You are given a set of five bonds whose cash flows and prices are given as follows. Note that their debt to maturity is different from 1 to 5 years. 11 9 8 6 105 Cash Flow = 11 9 8 106 0 11 9 108 0 0 11 109 0 0 0 111 0 0 0 and Current Price = 100 100 100 100 100 0 Calculate the yield to maturity for the five bonds. Assume that the current and expected future one-year interest rates are given in the following table. Calculate the liquidity premium for all five years based on the liquidity premium theory. Year 1 2 3 4 5 One-Year Bond Rate 5% 6% 7% 8% 9%