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Help and explanation finding the liquidity premium The current risk-free zero-coupon yield curve rates are listed below: Maturity (years) YTM H 3.8% 2 5.9% 3

Help and explanation finding the liquidity premium

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The current risk-free zero-coupon yield curve rates are listed below: Maturity (years) YTM H 3.8% 2 5.9% 3 7.2% If market expects the future short rate for year 2 to be 5%, what is the liquidity premium? Round to the nearest 0.01% and enter your answer as a percentage. For example: if you find YTM to be "12.34%", enter "12.34" as the

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