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 3 00 3 4 00 5 00 4 6 00 6 00 5 7 00 8 00 Using Excel, give the liquidity premiums for each year and enter your responses rounded to two decimal places l11 l21 l31 l41 l51

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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 to calculate

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%	3.00%
3	4.00%	5.00%
4	6.00%	6.00%
5	7.00%	8.00%

Using Excel, give the liquidity premiums for each year and enter your responses rounded to two decimal places.

l11	=	%
l21	=	%
l31	=	%
l41	=	%
l51	=	%

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