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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 %
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 % R1 2.65% E(1 1075 E(31 2.85% E( 42.15 20.05 0.1% 44 0.12% Using the liquidity premium theory, determine the current long-term) rates (Do not round intermediate calculations. Round your answers to 2 decimal places.) Year Current (Long-term) Rates 1 2 3 4
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