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Based on economists forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the...

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Finance

Based on economists forecasts and analysis, one-year Treasury bill rates and liquidity premiums for the next four years are expected to be as follows:

1R1 = 0.40%

E(2r1) = 0.85% L2 = 0.07%

E(3r1) = 0.95% L3 = 0.12%

E(4r1) = 1.25% L4 = 0.14%

Calculate the yield to maturity for four years. (Round your percentage answers to 2 decimal places. (e.g., 32.16))

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