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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.
Year One-Year Bond Rate Multiyear Bond Rate
1 2% 2%
2 5% 4%
3 7% 5%
4 8% 7%
5 10% 10%
The liquidity premiums for each year are given as: (enter your responses rounded to two decimal places.)
please I need the answer now thank you!!
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