One-year Treasury bills currently earn 3.95 percent. You expect that one year from now, 1-year Treasury bill

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One-year Treasury bills currently earn 3.95 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 4.15 percent. The liquidity premium on 2-year securities is 0.05 percent. If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities?

Posted Date: May 17, 2024 08:05 PM

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One-year Treasury bills currently earn 3.95 percent. You expect that one year from now, 1-year Treasury bill

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