On January 17, 2018, the U.S. Treasury Resource Center for interest rates reports the following current (spot) Treasury bond rates: 5-year bond rate =2.25%; 10-year bond rate = 2.46% a. Under the expectations theory, what is the expected 5-year bond rate (forward rate) 5 years from now? Based on your answer, what are rates expected to do (rise/fall/stay the same)? Explain why Expected 5-year Treasury bond rate 5 years from now = (Be sure to show your work here) Rate are expected to because b. For the same above suppose there is a liquidity premium of 0.20% for a 10-year bond and 0.10% for a 5-year bond, under the liquidity premium theory (adjusting for liquidity premiums incorporated in bond rates) what is the new expected 5-year bond rate 5 years from now? Based on your answer, what are rates expected to do (rise/fall/stay the same)? Explain why and why the expected rate under the liquidity premium theory differs from that of the expectations theory Rates Expected to Expected Rate with LP (Be sure to show your work here)