Question: The table below shows current and expected future one - year interest rates, as well as current interest rates on multiyear bonds. Use the table

The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond.
Year
One-Year Bond
Rate
Multiyear Bond Rate
1
2.00%
2.00%
2
3.00%
5.00%
3
4.00%
8.00%
4
6.00%
11.00%
5
9.00%
12.00%
Part 2
The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.)

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