Solve correctly I will up vote please otherwise don't waste mine time and money

> ar Question 7 QUESTION Not yet Marked out of 500 Flag question 15 points) Suppose that 1,77% (na1), and that future short term (1 year interest rates are expected to be 5% and 3% (for the subsequent two years). The liquidity premium w for n 2 and 3 is 0.25% and 0.35% respectively. a. Use the liquidity premium theory to calculate lix for ne2 and 3, and then plot the vield curve using your results. CALCULATE showing all work and ALL formulas that you use. b. Discuss what would be the impact on the yield curve in part a. if future short term rates were suddenly expected to ne 7 A- 3 Oilam Video F 1 B US X4 X %