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The Wall Street Journal reports that the rate on three-year Treasury securities is 6.85 percent and the rate on four-year Treasury securities is 7.15 percent.

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The Wall Street Journal reports that the rate on three-year Treasury securities is 6.85 percent and the rate on four-year Treasury securities is 7.15 percent. The one-year interest rate expected in year four is E(4r1),7.00 percent. According to the liquidity premium (LPT) hypothesis, what is the liquidity premium on the four-year Treasury security, L4

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