Question $10$

The table below shows current and expected future one$-$year bond interest rates. For example, a one$-$year bond is projected to have a $2\mathrm{.}50\%$ interest rate next year and a $4\mathrm{.}25\%$ interest rate in three years, etc.

The third column shows the interest rates on multiyear bonds. For example, a $2-$year bond is at $4\%,$ a $3-$year bond is at $4\mathrm{.}75\%,$ etc.

Use the table to calculate the liquidity premium for each multiyear bond.

$\backslash$table$[[$Year$,$One Year Bond,MultiYear Bond$],[1,2\mathrm{.}50\%,2\mathrm{.}50\%$