bonds. a) What is the liquidity premium for a bond purchased today maturing in 2 years? b) What is the liquidity premium for a bond purchased today maturing in 3 years? c) What is the liquidity premium for a bond purchased today maturing in 4 years? d) If the expected one-year rate for bonds in year 4 rises to 15% and nothing else changes, what will th rate be on a multi-year bond purchased today and maturing in 2 years. e) If the expected one-year rate for bonds in year 4 rises to 15% and nothing else changes, what will th rate be on a multi-year bond purchased today and maturing in 4 years.

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Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.