The yield on a one-year bond is currently 3% and the expected yield for the next three years is also 3%. If the term premium is 0.5(n - 1) where n is the year to maturity, then the yield curve is upward sloping. flat. downward sloping. cannot be determined. The yield on a one-year bond is currently 3% and the expected yield for the next three years is also 3%. If the term premium is 0.5, then the yield curve is upward sloping. flat. downward sloping. cannot be determined. The yield on a one-year bond is currently 4% and the expected yield on one-year bonds for the next two years is 5% and 6%. If the liquidity premium is 0.5%, what is the yield on a bond with two years to maturity? 4.5% 5% 5.5% 6% The yield on a one-year bond is currently 4% and the expected yield on one-year bonds for the next two years is 5% and 6%. If the liquidity premium is 0.5%, what is the yield on a bond with three years to maturity? 4.5% 5% 5.5% 6% If a corporate bond becomes traded on an exchange (as opposed to OTC), the demand for the bond shifts to the and its risk premia right; rises. right; falls. left; rises. left; falls