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Could you help me with this question? I am in a hurry You observe the following market interest rates, for both borrowing and lending: One-year

Could you help me with this question? I am in a hurry

You observe the following market interest rates, for both borrowing and lending:

One-year bond's rate is 5%

Two-year bond's rate is 6%

The liquidity premium on one-year, l_1t is 0.15%

The liquidity premium on two-year, l_2t is 0.25%

What is the expected one-year interest rate one year from now, rounding to two decimal places and in percentage? Assume that the Liquidity Premium Theory for interest rates holds.

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