A particular security's default risk premiun is 2 percent For all securities, the inflation risk premium is 175 percent and the real risk- free rate is 1.50 percent. The security's liquidity risk premium is 0.25 percent and maturity risk has no special covenants. Calculate the security's equilibrium rate of return. (Round s 0 85 percent. The security decimal places.) Rate of return Suppose that the current 1 year rate (I year spot rate) and expected 1 year T bll ates over the following three years te, years 2,3, and 4, respectively) are as follows 1R1 250%, gri)-3 75%, ari)-4 25%, Earl)-575% Using the unbiased expectations theory, calculate the current (long-term) rates for 1, 2, 3, and 4 year maturty Treasury securities (Do not round intermedia te calculations. Round your answers to 2 decimal places.) Year ong Based on economists' forecasts and analysis, 1-year Treasury bill rates and liquidit be as follows y premums for the next four years are expected to R1 (m) (ri) (4r1) ,e 1.25% -2.15% -2.55% L2-0.08% L3 0.18% 3.00% 14 0.15% Using the liquidity premium theory, determine the current (long term) rates. (Do not round intermediote calculations. Round your answers to 2 decimal places Current (Long-term) Rates Year