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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: R1

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: R1 = 7.55% E(r2) = 8.65% L2 = 1.00% E(r3) = 8.75% L3 = 1.10% E(r4) = 9.05% L4 = 1.15% Using the liquidity premium hypothesis, what is the current rate on a four-year Treasury security?

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