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Problem 2 Based on economists' forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as

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Problem 2 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: 0R1E(1r1)=6.75%E(2r1)=6.85%E(3r1)=7.15%=5.65%L1=0.05%L2=0.10%L3=0.12% Using the liquidity premium hypothesis, plot the current yield curve

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