Based on economists’ forecasts and analysis, 1year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:
R_{1 }  =  2.00  %  
E(_{2}r_{1})  =  2.90  %  L_{2}  =  0.06  %  
E(_{3}r_{1})  =  3.30  %  L_{3}  =  0.08  %  
E(_{4}r_{1})  =  3.75  %  L_{4}  =  0.13  %  
Using the liquidity premium theory, determine the current (longterm) rates. (Do not round intermediate calculations. Round your answers to 2 decimal places.)
Based on economists’ forecasts and analysis, 1year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:
R_{1 }  =  2.00  %  
E(_{2}r_{1})  =  2.90  %  L_{2}  =  0.06  %  
E(_{3}r_{1})  =  3.30  %  L_{3}  =  0.08  %  
E(_{4}r_{1})  =  3.75  %  L_{4}  =  0.13  %  
Using the liquidity premium theory, determine the current (longterm) rates. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Calculation of Current LongTerm Rates:
The current longterm rates for Year 1 is 2.00%, for Year 2 is 2.48%, for Year 3 is 2.78% and for Year 4 is 3.05%.
Excel Spreadsheet:
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