Consider the following short$-$term rates and a liquidity premium:

Required:

First calculate spot rates if they are solely a function of Expectation Theory. Next, if the liquidity rate is a constant $2\mathrm{.}00$ percent for Years $2$ and $3,$ calculate the forward

rates. Finally calculate the spot rates combining both the Expectations Theory with the liquidity premium.

$($Use cells A$4$ to B$7$ from the given information to complete this question.$)$ Please provide excel formula. Spot rate $(\%),$ Expectations Theory for year $1$ formula$+$answer is $=(1+$b$4)^(1/$a$16)-1$