Squire inc.'s 5-year bonds yield 6.75%, and 5-year t-bonds yield 4.80%. the real risk-free rate is r* = 2.75%, the inflation premium for 5-year bonds is ip = 1.65%, the default risk premium for squire's bonds is drp = 1.20% versus zero for t-bonds, and the maturity risk premium for all bonds is found with the formula mrp = (t − 1) × 0.1%, where t = number of years to maturity. what is the liquidity premium (lp) on squire's bonds?

cognitive overload: having a lot on your mind impairs decision-making and tends to result in the simplest, but not necessarily best, option being selected.

empathy gaps: overlooking how you might feel in a different situation can result in unnecessary purchases, such as overbuying when shopping for food on an empty stomach.

optimism and overconfidence: wearing rose-tinted glasses and having unrealistic expectations about the future can affect money management and leave you unprepared for a change in circumstance.

instant gratification: seeking instant gratification drives impulsive spending and can undermine long-term planning and savings.

harmful habits: automatic or mindless behaviour can amplify a poor financial decision as it becomes a recurring event.

social norms: we are heavily influenced by the actions of others; while this can be in certain circumstances, it also contributes to the pressure to keep up with the joneses through conspicuous consumption.

answer; proclamation of 1763;

answer; signaling;

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