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Please answer all parts and show your work ! Thanks The table below shows current and expected future one-year interest rates, as well as current

image text in transcribed Please answer all parts and show your work ! Thanks

The table below shows current and expected future one-year interest rates, as well as current interest rates on multi-year bonds. Use the table to calculate the liquidity premium for each multi-year bond. Year 1 2 One-Year Bond Rate 2.00% 5.00% 8.00% 9.00% 11.00% Multi-year Bond Rate 2.00% 5.00% 6.00% 8.00% 11.00% 3 4 5 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) = % II = % 111 121 131 141 II = % = % 151 %

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