Question: Based on economists forecasts and analysis, one-year T-bill rates and liquidity premiums for the next four years are expected to be as follows: 1R1 =
Based on economists’ forecasts and analysis, one-year T-bill rates and liquidity premiums for the next four years are expected to be as follows: 1R1 = .47% E(2r1) = .97% L2 = 0.06% E(3r1) = 1.07% L3 = 0.11% E(4r1) = 1.37% L4 = 0.13%. Calculate the four annual rates. (Round your answers to 2 decimal places. (e.g., 32.16))
Year 1= %
Year 2= %
Year 3= %
Year 4= %
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