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Liquidity Premium Hypothesis Based on economists' forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be

Liquidity Premium Hypothesis 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 = 7.25% E(r₂) = 8.35% L₂ = .70% E(r₃) = 8.45% L₃ = .80% E(r₄) = 8.75% L₄ = .85% Using the liquidity premium hypothesis, what is the current rate on a four-year Treasury security?

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