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 Bond Year Multiyear Bond Rate Rate 1 2.00% 2.00% 2 4.00% 4.00% 3 6.00% 7.00% 4 7.00% 9.00% 5 8.00% 11.00% The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 11 = 0.5% 131 2% = 2 25 % 161 = 3.6%

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