$4$

Problem $2-14($LG $2-7)$

$10$

points

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:

$1R_1=5\mathrm{.}71\%$

$E{(}_2{r}_1)=6\mathrm{.}81\%L_2=0\mathrm{.}04\%$

$E{(}_3{r}_1)=6\mathrm{.}91\%L_3=0\mathrm{.}15\%$

$E{(}_4{r}_1)=7\mathrm{.}21\%L_4=0\mathrm{.}17\%$

Calculate the yield to maturity for four years.

Note: Round your percentage answers to $2$ decimal places $($e$.$g$.,32\mathrm{.}16).$

Answer is complete but not entirely correct.

$\backslash$table$[[,$Yield To Maturity$],[$Year $1,5\mathrm{.}71,$