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Suppose the cuent expected one-year Treasury bill rates over the following years and liquidity prems...

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Suppose the cuent expected one-year Treasury bill rates over the following years and liquidity prems are as follows: IRI- E(2x1)= 3.20% E(3r1)= 3.50% E(4f1)-3.80% EGrI,-4.20% 3.00% 0-10% 0, 1 5% 0.18% 0.20% LA- (1 Usn the unbiased expectations theory, calculate the current long-term) rates or two three- tour-and ve-vear maturity reasurv securities (2) Using the liquidity premium hypothesis, what should be current long-term rates for two-, three-, four- and five-year-maturity Treasury securities.?? (3) Plot the current yield curve. Make sure you label the axes on the graph and identify the four annual rates on the curve both on the axes and on the yield curve itself. rates for two-, three-. four- and tive-vear-maturi

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