What is the interest rate on two year bond-five year bonds

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The one year interest rate over the next five years is expected to be 7%, 8%, 9%,10% and 11%. Investors preferences for holding short term bonds have the liquidity premiums for one year to five year bonds as 0%, 0.25%, 0.5%, 0.75%, and 1%, respectively. What is the interest rate on a two year bond and five year bonds?

Reference no: EM131004718

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