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10: Suppose the unbiased expectations theory is true. Further, we observe yields on U.S. Treasury securities...

10: Suppose the unbiased expectations theory is true. Further, we observe yields on U.S. Treasury securities today and see the following:Which of the following

is/are true?

     a. The 2-year security has a 2 percent liquidity premium.

     b. The 3-year security has a 1 percent liquidity premium.

     c. We expect yields to rise in the future.

     d. We expect yields to fall in the future.

11: Julie has $2,000 in her bank right now. In addition, she will be making 4

more deposits of $1,000—at the end of each of the next 4 years. If the

bank pays 6% per year, compounded annually, how much will Julie have in her

account at the end of 4 years? (to the nearest dollar)

     a. $ 6,900

     b. $ 4,375

     c. $ 6,375

     d. $ 6,586

Please show the process

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