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Based on economists forecasts and analysis, one-year T-bill rates and liquidity premiums for the next four years are expected to be as follows: 1 R
Based on economists forecasts and analysis, one-year T-bill rates and liquidity premiums for the next four years are expected to be as follows:
1R1 | = | 5.65 | % | ||||
E(2r1) | = | 6.75 | % | L2 | = | 0.05 | % |
E(3r1) | = | 6.85 | % | L3 | = | 0.10 | % |
E(4r1) | = | 7.15 | % | L4 | = | 0.12 | % |
Calculate the four annual rates. (Round your answers to 2 decimal places. (e.g., 32.16))
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