Question: er 6 Homework Help Save & EX One-year Treasury bills currently earn 225 percent. You expect that one year from now, 1-year Treasury bill rates

er 6 Homework Help Save & EX One-year Treasury bills currently earn 225 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 245 percent and that two years from now. 1-year Treasury bil rates will increase to 2.95 percent. The liquidity premium on 2 year securities Is 0.05 percent and on 3-year securities is 0.15 percent. If the liquidity premium theory is correct, what should the current rate be on 3- year Treasury securities? (Do not round intermediate calculations, Round your answer to 2 decimal places.) Current rate Ook 1 of 4 ili Next >

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