QUESTION 9 0.8 Suppose the interest rate on a 1-year T-bond is 5.00% and that on a 2-year T-bond is 6.80%. Assume that the pure expectations theory is NOT valid, and the MRP is zero for a 1-year T-bond but 0.40% for a 2-year bond. What is the yield on a 1-year T-bond expected to be one year from now? Round the intermediate calculations to 4 decimal places and final answer to 2 decimal places. QUESTION 16 0.8 points Save Answer Kay Corporation's 5-year bonds yield 5.90% and 5-year T-bonds yield 4.40%. The real risk-free rate is r- 2.5%, the inflation premium for 5 year bonds is IP = 1.50%, the default risk premium for Kay's bonds is DRP 1.30% versus zero for T bonds, and the maturity risk premium for all bonds is found with the formula MRP ( - 1) X 0.1%, where number of years to maturity. What is the liquidity premium (LP) on Kay's bonds