QUESTION 2: 8 POINTS (1) Complete the table. You need to show calculations to earn full credits. (6 points) Year One- Year Bond Rate 1 1% 2 3 1.5% 4 Multiyear Bond Multiyear Bond Rate predicted liquidity premium Rate predicted by by Liquidity Premium The- Expectation The- ory ory 1.5% 0.5% 3% 1% 4% 3% 5% 2% (2) Plot the yield curve predicted by the liquidity premium theory and yield curve predicted by the expectations theory. (2 points)