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The Wall Street Journal reports that the rate on three-year Treasury securitics is 7.25 percent and the rate on four-year Treasury securities is 8.70 percent.

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The Wall Street Journal reports that the rate on three-year Treasury securitics is 7.25 percent and the rate on four-year Treasury securities is 8.70 percent. The one-year interest rate expected in year four is El) 9.25 percent. According to the liquidity premium hypothesis, what is the liquidity premium on the four-year Treasury security. 3

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