The Wall Street Journal reports that the rate on 9-year Treasury securities is 6.85 percent and the rate on 10-year Treasury securities is 7.15 percent. The 1-year risk-free rate expected in nine years is, E(10r1), is 7.75 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the 10-year Treasury security, L10? (Do not round intermediate calculations. Round your final answer to 2 decimal places.)
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