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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))

Annual Rates
Year 1 %
Year 2 %
Year 3 %
Year 4 %

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