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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

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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 E(201) E(31) Earn) 0.98% 2.85% 2.15% 2.45% L2- 0.09% L3= 0.12% 14 0.14% Using the liquidity premium theory, determine the current (long-term) rates. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Years 1 Current (Long-term) Rates 0.90% 1.82% 1.8796 2 3 4 96

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