Question 2 1 pts Which of the following are correct? i. The liquidity premium for a 2-year government band is higher than the liquidity premium for a 5-year government bond. II. The liquidity premium for a 3-year government bond is lower than the liquidity premium for a 3-year corporate bond. iii. The expected return from holding an illiquid two year zero-coupon bond to maturity is higher than the expected return from buying a liquid one-year zero-coupon bond land holding it to maturityl followed by investing in another liquid one-year zero coupon bond and holding it to maturity). iv. The expected one year rate in one year's time is lower under the Liquidity Premium Hypothesis than the expected one year rate in one year's time under the Pure Expectations Hypothesis assuming that two year bonds are illiquid and one-year bonds are liquids The correct answer is RTSH Question 2 1 pts Which of the following are correct? i. The liquidity premium for a 2-year government band is higher than the liquidity premium for a 5-year government bond. II. The liquidity premium for a 3-year government bond is lower than the liquidity premium for a 3-year corporate bond. iii. The expected return from holding an illiquid two year zero-coupon bond to maturity is higher than the expected return from buying a liquid one-year zero-coupon bond land holding it to maturityl followed by investing in another liquid one-year zero coupon bond and holding it to maturity). iv. The expected one year rate in one year's time is lower under the Liquidity Premium Hypothesis than the expected one year rate in one year's time under the Pure Expectations Hypothesis assuming that two year bonds are illiquid and one-year bonds are liquids The correct answer is RTSH