Question: One - year Treasury bills currently earn 2 . 9 5 percent. You expect that one year from now, oneyear Treasury bill rates will increase
Oneyear Treasury bills currently earn percent. You expect that one year from now, oneyear Treasury bill rates will increase to percent and that two years from now, oneyear Treasury bill rates will increase to percent. The liquidity premium on twoyear securities is percent and on threeyear securities is percent. If the liquidity theory is correct, what should the current rate bef on threeyear Treasury securities
A percent
B percent
C percent
D percent
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