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The Wall Street Journal reports that the rate on 4-year Treasury securities is 5.55 percent and the rate on 5-year Treasury securities is 5.80 percent.

The Wall Street Journal reports that the rate on 4-year Treasury securities is 5.55 percent and the rate on 5-year Treasury securities is 5.80 percent. The 1-year risk-free rate expected in four years is, E(5r1), is 6.40 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the 5-year Treasury security, L5?

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