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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: Using

image text in transcribed 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: Using the liquidity premium theory, what should be the current rate on fouryear Treasury securities? 7.13 percent 6.82 percent 6.59 percent 6.75 percent

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