There is a financial product A which is guaranteed by government generates 12% annual return. It has no default risk and only exposure to liquidity risk and maturity risk. Assume there is another same term product that provides 2% maturity premium and 1.5% default risk premium. If the expected inflation rate is 3% next year, the real return of one-year treasury note is 2.5%. The implicit liquidity premium compensated by product A is equal to: A financial product that promises to pay 6.5%, monthly compounding. If you desire an amount of 386,000 to buy a brand new BMW X3 when you are 35 years old, how much money you have to save each month to fulfill your wish at the day you graduate from school when you are 22 years old