In: Finance
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 = .37%
E(2r1) = .62% L2 = 0.04%
E(3r1) = .72% L2 = 0.15%
E(4r1) = 1.02% L2 = 0.18%
Calculate the four annual rates.