Question: One - year Treasury bills currenty earn 3 . 2 5 percent. You expect that one year from now, 1 - year Treasury bill rates
Oneyear Treasury bills currenty earn percent. You expect that one year from now, year Treasury bill rates wall increase to percent. The liquidity premium on year securities is percent. If the liquidily premium theory is comect, what should the cument rate be on year Treasury securities
Note: Do not round intermediate catcutations. Aound your percentage answer to decimal places le ahould be antered as
Cument rate
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