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Based on economists forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the...

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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: Using the liquidity premium theory, what is the current rate on a four-year Treasury security? R1 = 6.65% E(2) = 7.75% L2 = 0.18% Er) - 7.85% L3 = 0.20% Elra) 8,15% 4 T 0,25

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