5) 2+1+2+1 = 6 points When interest rates on a 1 year bonds is 3.0 percent and is expected to have a path of 2.5, 2, 1.5, and1 percent over the next four years and the liquidity premium, is Int = (0.1)(n-1)% a. Calculate the yield today on 2 year, 3 year, 4 year and 5 year bonds respectively. Draw the yield curve. by. How would this yield curve compare to yield curve from expectation hypothesis? Explain briefly. c. What information do we derive on future economic growth and inflation from the yield curve in part a. d. If Bank of Canada increases the short term yield to 4%, and people expect it to be a temporary change, what will be the effect on the yield curve