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 = 5.80%
E(r2) = 6.90%	L2 = .60%
E(r3) = 7.10%	L3 = .63%
E(r4) = 7.30%	L4 = .65%

Using the liquidity premium hypothesis, what is the current rate on a four-year Treasury security?

7.2416%

7.9500%

6.7750%

7.3000%