$1.$ Suppose pure expectation theory holds. If the current interest rate is $2$ percent and $1-$year interest rates for the next three years are expected to be $3,5,$ and $6$ percent, and the $4-$year term premium is $1$ percent, then the $4-$year bond rate will be$,$ according to the liquidity premium theory, assuming interest rates are also determined by the pure expectations theory. $.$

$2$ percent.

$3$ percent.

$4$ percent.

$5$ percent.

$2.$The yield on a discount basis of a $75-$day, $$1,000$ Treasury bill selling for $$985$ is$\_\_\_\_\_\_\_\_$

$5\%$

$11\%$

$7\%$

$9\%$