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,

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 Rate Multiyear Bond Rate 2.00% 2.00% 2 4.00% 4.00% 3 6.00% 6.00% 4 8.00% 7.00% 5 10.00% 8.00% 1 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) II % II % 111 121 131 141 151 = % = % = %

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