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6 Based on economists forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:
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Based on economists" forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: Ri 1.450 (271) - 2.354 E(371) - 2.750 E(471) - 3.201 12 0.058 L3 0.074 0.121 Using the liquidity premium theory, determine the current long-term) rates. (Do not round intermediate calculations, Round your answers to 2 decimal places.) Years Current (Long-term) Rates % 1 2 3 4 Step by Step Solution
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