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(6) Government economists have forecasted one-year T-bill rates for the following five years as follows: Year 1-year rate 1 4.25% 2 5.15% AN 3 5.50%

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(6) Government economists have forecasted one-year T-bill rates for the following five years as follows: Year 1-year rate 1 4.25% 2 5.15% AN 3 5.50% 4 6.25% 5 5 7.10% You have liquidity premium 0.25% for the next two years and 0.50% thereafter. What do you expect the current interest rate is on a 4-year bond

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