20. Suppose 10-year corporate bonds have a yield of 8%, and 10-year T-bonds yield 5%. The real risk-free rate is r* = 1.80%, the inflation premium for 10-year bonds is IP = 2%, the default risk premium for corporate bonds is DRP = 1% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP =(t-1) * 0.1%, where t number of years to maturity. What is the liquidity premium (LP) on corporate bonds? 21. Consider the following T-Bond yields: T-Bond Years to Maturity Average Yield per Year 5% 6% 7% What is the 1-year implied forward rate two years from now (i.e. the one year rate that is expected to prevail two years from now) according to pure expectations theory