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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
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 Year Multiyear Bond Rate Rate 1 2.00% 2.00% 2 5.00% 5.00% 3 8.00% 7.00% 4 10.00% 9.00% 5 12.00% 10.00% One-Year Bond Year Multiyear Bond Rate Rate 1 2.00% 2.00% 2 5.00% 5.00% 3 8.00% 7.00% 4 10.00% 9.00% 5 12.00% 10.00% Unlimited tries The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) 411=Type % 21- Type % 31-Type % 41=Type % 51 Type %
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