The current four-year interest rate is 5.0%
The current one-year interest rate is 3.0%
The expected one-year rate for one year from now is 5.0%
The expected one-year rate for two years from now is 6.5%
Assuming the Expections Hypothesis is correct, what is the expected one-year rate for three years from now?
Assuming the Liquidity Premium Theory is correct, and, if the expected one year rate is 4.75% three years from now, what is the Liquidity Premium?