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Based on economists' forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: 1

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Based on economists' forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows: 1 R1 = 0.40% E(211) = 0.85% E(31) = 0.95% E(411) 1.25% L2 = 0.07% L3 = 0.12% L4 = 0.14% Calculate the yield to maturity for four years. (Round your percentage answers to 2 decimal places. (e.g., 32.16)) Yield To Maturity 0.40% Year 1 Year 2 0.04% Year 3 0.06% Year 4 0.05%

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