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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: =

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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: = ok R1 E(271) = E(371) = E(471) = 0.65% 1.88% 1.989 2.29% L2 L3 L4 0.045 = 0.08% = 0.10% t 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 % 2 3 % % 4

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