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 mult year bond. One-Year Bond Year Multiyear Bond Rate Rate 2.00% 2.00% 3.00% 4,00% 4.00% 7.00% 7.00% 10.00% 9.00% 11.00% 1 2 3 4 5 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 5 9.00% 11.00% The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 1 = 0 % 121 134 = % 141 = 1st = 0% = %

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