Question: Problem 3 The 3-year interest rate is 6.60%, and the 4 -year interest rate is 7.90%. The liquidity premia for 3 - and 4 -year

Problem 3 The 3-year interest rate is 6.60%, and the 4 -year interest rate is 7.90%. The liquidity premia for 3 - and 4 -year bonds are 0.60% and 0.9%, respectively. Calculate the adjusted forward-rate forecast for 3 periods in the future. (Round your answer to two decimal points.)

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