Question: The table below shows current and expected future one-year interest rates, as well as curent 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 curent 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

3

4

5

2%

5%

7%

8%

105

2%

4%

5%

7%

10%

*please do not use AI to answer question*

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