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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

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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 liquidity premium for each multiyear bond. Year Multiyear Bond Rate 1 2 3 One-Year Bond Rate 2.00% 5.00% 7.00% 8.00% 10.00% 2.00% 5.00% 6.00% 7.00% 8.00% 4 5 The liquidity premiums for each year are given as: (Enter your responses rounded to two decimal places.) = % 111 121 131 = % = % % 7 151 = %

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