Based on economists$$ forecasts and analysis, $1-$year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:

R$1=0\mathrm{.}70\%$

E$(2$r$1)=1\mathrm{.}85\%$ L$2=0\mathrm{.}05\%$

E$(3$r$1)=1\mathrm{.}95\%$ L$3=0\mathrm{.}10\%$

E$(4$r$1)=2\mathrm{.}25\%$ L$4=0\mathrm{.}12\%$

Using the liquidity premium theory, determine the current $($long$-$term$)$ rates.

Note: Do not round intermediate calculations. Round your percentage answers to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered as $12\mathrm{.}34).$Based on economists' forecasts and analysis, $1-$year Treasury bill rates and liquidity premiums for the next four years are expected to

be as follows:

$R_1,=0\mathrm{.}70\%,$

$E{(}_2{r}_1),=1\mathrm{.}85\%,L_2=0\mathrm{.}05\%$

$E{(}_3{r}_1),=1\mathrm{.}95\%,L_3=0\mathrm{.}10\%$

$E(4r_1),=2\mathrm{.}25\%,L_4=0\mathrm{.}12\%$

Using the liquidity premium theory, determine the current $($long$-$term$)$ rates.

Note: Do not round intermediate calculations. Round your percentage answers to $2$ decimal places $($i$.$e$.,0\mathrm{.}1234$ should be entered

as $12\mathrm{.}34).$