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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 t be as
Based on economists' forecasts and analysis, year Treasury bill rates and liquidity premiums for the next four years are expected be as follows:
Using the liquidity premium theory, determine the current longterm rates.
Note: Do not round intermediate calculations. Round your percentage answers to decimal places ie should be entere as
tableYearstableCurrent LongtermRates
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