The table below shows current one$-$year interest rate and current interest rates on multi$-$year

bonds. Assume that the liquidity premium theory is the correct theory of the term structure. The

liquidity premium for the $2-$year bond is $0\mathrm{.}5\%$ and the liquidity premium for the $3-$year bond is

$1\mathrm{.}0\%.$ What is the $1-$year interest rate that is expected to prevail in year $2?$ What is the $1-$year

interest rate that is expected to prevail in year $3?$