The Wall Street Journal reports that the rate on $3-$year Treasury securities is $6\mathrm{.}25$ percent and the rate on $4-$year Treasury securities is

$6\mathrm{.}70$ percent. The $1-$year interest rate expected in three years, $E{(}_4{r}_1),$ is $7\mathrm{.}30$ percent. According to the liquidity premium hypotheses,

what is the liquidity premium on the $4-$year Treasury security, $L_4?$

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

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

Answer is complete but not entirely correct.

Liquidity

premium

$\%$