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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

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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 as follows: R1 = 7.104 El 2) = 8.206 L2 .554 Elr3) = 8.36% L3 = .654 Era) = 8.684 L4 = 70% Using the liquidity premium hypothesis, what is the current rate on a four-year Treasury security? Multiple Choice 80490% 52205 BOSOO 53000

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