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 = .50%
E(2r1) = .75% L2 = 0.07%
E(3r1) = .85% L3 = 0.16%
E(4r1) = 1.15% L4 = 0.17%
Identify the four annual rates. (Round your answers to 2 decimal places. (e.g., 32.16))
Annual Rates
Year 1 %
Year 2 %
Year 3 %
Year 4 %