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 Multi-year bond rate 1 2% 2% 2 3% 5% 3 4% 6% 4. 5% 8% 5 7% 10% Based on liquidity preference theory, what is the liquidity premium on the 4- year bond rate? 3% 3.5% 4% 4.5%