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The Wall Street Journal reports that the rate on 7-year Treasury securities is 6.65 percent and the rate on 8-year Treasury securities is 7.00 percent.

The Wall Street Journal reports that the rate on 7-year Treasury securities is 6.65 percent and the rate on 8-year Treasury securities is 7.00 percent. The 1-year risk-free rate expected in seven years is, E(8r1), is 7.60 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the 8-year Treasury security, L8? what the liquidity premium

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