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Question # 5 : Liquidity Premium and Shape of Yield Curve [ 1 0 Points ] Table 1 lists the YTM for a one year

Question #5: Liquidity Premium and Shape of Yield Curve [10 Points]
Table 1 lists the YTM for a one year bond purchased today, the expected YTM for a one year bond purchased next year and the expected YTM for a one year bond purchased in two years.
Table 2 shows the liquidity premium for holding a two year bond purchased today and a three year bond purchased today.
Table 1
\table[[0i1,?1i2e,?2i3e
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