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. One-Year Year Multiyear Bond Rate Bond Rate 1 2% 2% 2 4% 4% 3 5% 6% 4 8% 9% 5 11% 12%

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