d. Suppose that the terms premium is 1.0 percentage point and the risk premium is 2.0 percentage points. With Figure 5-11 as a guide, use the LM curve with the zero lower bound and the term premium and risk premium to graph the LM curve for the government bond rate and the LM curve for the private bond rate and interest rates between 0 and 8, with intervals of one-half of a percentage point. e. Use the graphs of the IS curve and the three LM curves to explain what the equilibrium interest rates for the federal funds rate, the government bond rate, and the private bond rate are and what the equilibrium level of income