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Suppose the interest one-year interest rates over the next five years:9%, to 8% to 7% to %6, %5. Suppose that investors liquidity premiums for one-to

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Suppose the interest one-year interest rates over the next five years:9%, to 8% to 7% to %6, %5. Suppose that investors liquidity premiums for one-to five year bonds are %0 %0.1.%0.2,%0.3,and %0.4 respectively. Then, according to the liquidity preference theory, the yields on the 5 year bond would be: -%5.6 -%6.8 -%7.4 -%6.2

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