Based on economists’ forecasts and analysis, oneyear Tbill
rates and liquidity premiums for the next four years are expected
to be as follows:
_{1}R_{1}  =  5.65  %  
E(_{2}r_{1})  =  6.75  %  L_{2}  =  0.05  % 
E(_{3}r_{1})  =  6.85  %  L_{3}  =  0.10  % 
E(_{4}r_{1})  =  7.15  %  L_{4}  =  0.12  % 
Calculate the four annual rates. (Round your answers to 2
decimal places. (e.g., 32.16))

Get Answers For Free
Most questions answered within 1 hours.