Question: Using the information from the previous question, now assume that investors prefer holding short-term bonds. A liquidity premium of 10 basis points is required for

Using the information from the previous question, now assume that investors prefer holding short-term bonds. A liquidity premium of 10 basis points is required for each year of a bond’s maturity. What will be the interest rates on a three-year bond, six-year bond, and nine-year bond?

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