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The one-year interest rate over the next eight years will be 4%, 5.5%, 6%, 7%,...

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Finance

The one-year interest rate over the next eight years will be 4%, 5.5%, 6%, 7%, 7.5%, 9%, 9% and 10.5%, assume that the investor prefers holding short-term bonds, liquidity premiums are 0%, 0.1%, 0.25%, 1%, 1.3%, 1.8%, 2.2%, and 2.50% respectively. What will be the interest rates on a 6-year bond?

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