Suppose that all investors observe interest rates for maturities in the next 4 years as those listed in the following table.

Years to Maturity	Interest Rate today
1		2	%
2		3	%
3		4	%
4		5	%

If the expectations hypothesis theory turns out to predict the future accurately, what will be the yield-to-maturity of a 2-year zero-coupon bond purchased two years from today? What is the yield attributable to liquidity premium for that bond?

Group of answer choices

9% ; 0%

8.5% ; 0.5%

7% ; 0%

6% ; 0%

6.5% ; 0.5%