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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 | = | .50% | |||
E(2r1) | = | .98% | L2 | = | 0.09% |
E(3r1) | = | 1.08% | L3 | = | 0.14% |
E(4r1) | = | 1.38% | L4 | = | 0.16% |
Calculate the four annual rates. (Round your answers to 2 decimal places. (e.g., 32.16))
Year 1: 0.50%
Year 2: ____%
Year 3: _____%
Year 4: _____%
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