4. Answer the following questions; A Suppose that the current one-year rate (one year spot rate) and expected one-year T- bill rates over the following three years (i.e., years 2, 3, and 4, respectively) are as follows; tu = 6%, ift+1-7%, ift+2-75%, ie,t+,-7.85% Using the unbiased expectations theory, calculate the current long-term rates for one, two, three, and four-year maturity Treasury securities. Plot the resulting yields curve. B Suppose we observe the following rates: ie = 10%, = 14%, and i11+1-10%. If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2 C You note the following yield curve in the The Wall Street Journal. According to the unbiased expectation theory, what is the one-year forward rate for the period beginning two years from today fi4+2? Maturity Yield one day 2.00% one year 5.50 two years 6.50 three years 9.00