Question: Solve this with formula QUESTION 2 Short term (one year) interest years over the next 6 years will be 1.7, 0.7, 0.9, 2.7, 1.8, and

Solve this with formula

QUESTION 2 Short term (one year) interest years over the next 6 years will be 1.7, 0.7, 0.9, 2.7, 1.8, and 1. Assume that the investors prefer holding short-term bonds so that liquidity premium of 10 basis points is required for each year of bond maturity. Using the liquidity premium theor y, what will be the interest rates on 5-year bonds? QUESTION 3 Debt issued by Drumpt corporation currently yields 9%. A municipal bond of equal risk currently yields 7%. At what marginal tax rate would an investor be indifferent between the two bonds? Please input the answer in decimal format

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