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4. [3] Calculate a yield curve; show the effects of the liquidity premium (LP) on the curve; what might explain the shapes of the curves

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4. [3] Calculate a yield curve; show the effects of the liquidity premium (LP) on the curve; what might explain the shapes of the curves 2018? YC YC+LP YR 2011 2012 2013 2014 2015 2016 2017 2018 i 2.0 2.1 2.3 2.7 3.5 3.8 4.4 5.1 LP 0.0 0.4 0.7 1.0 1.2 1.5 2.0 2.4

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