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The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate
The table below shows current and expected future one-year interest rates, as well as current interest rates on multiyear bonds. Use the table to calculate the liquidity premium for each multiyear bond. One-Year Bond Rate 2.00% 5.00% 7.00% 10.00% 13.00% The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 111 = % 121 = % 131 = % 141 = % % 151 = 11 Year 1 2345 Multiyear Bond Rate 2.00% 5.00% 6.00% 7.00% 8.00%
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