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Based on economists forecasts and analysis, one-year T-bill rates, future one-year rates, and liquidity premiums are expected to be follows: - 50% Elor) - 75%

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Based on economists forecasts and analysis, one-year T-bill rates, future one-year rates, and liquidity premiums are expected to be follows: - 50% Elor) - 75% LE 0.07% Ear) - 85% - 0.16% EGP) - 1.15% Ly - 0.17% What are the spot rates available today for one and two year securities, respectively? Note: The notation is that which was introduced in class lecture. so it differs from the book 0.50% and 0.66% 0.67% and 91% 0.78% and 0.91% 0.50 and 0.78% Question 16 1 pts X 2 3 $ 4 6 7 8 9 W E R T Y U A S D F G H J K

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