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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 = 7.60% E(r2) = 8.70% L2 = 1.05% E(r3) = 8.80% L3 = 1.15% E(r4) = 9.10% L4 = 1.20% Using the liquidity premium hypothesis, what is the current rate on a four-year Treasury security?

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