based on economist forecast and analysis $1$ year treasury bill rates and liquidity premiums for the next four years are expected to be as followsBased on economists' forecasts and analysis, $1-$year Treasury billSuppose we observe the following rates: ${?}_1{R}_1=5\%,{?}_1{R}_2=9\%.$ If

the unbiased expectations theory of the term structure of

interest rates holds, what is the $1-$year interest rate expected

one year from now, $E(2r_1)?$

rates and liquidity premiums for the next four years are

expected to be as follows:

$R_1=0\mathrm{.}40\%$

$E{(}_2{r}_1)=1\mathrm{.}55\%L_2=0\mathrm{.}05\%$

$E{(}_3{r}_1)=1\mathrm{.}65\%L_3=0\mathrm{.}10\%$

$E{(}_4{r}_1)=1\mathrm{.}95\%L_4=0\mathrm{.}12\%$