3223

Based on economists’ forecasts and analysis, 1-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:

R1=1.20%

E(2r1)=2.35% L2=0.09%

E(3r1)=2.45% L3=0.12%

E(4r1)=2.75% L4=0.14%