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Suppose we observe the following rates: - 1R1=10% - 1R2=14% - E(2r1)=18% If the liquidity premium theory of the term structure of interest rates holds,

Suppose we observe the following rates: - 1R1=10% - 1R2=14% - E(2r1)=18% If the liquidity premium theory of the term structure of interest rates holds, what is the liquidity premium for year 2,L2 ? R ound your intermediate calculations to five decimal places and final percentage answer to three decimal places. (e.g., 32.161)

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