[Related to Solved Problem

5.2b]

Use the data on Treasury securities in the following table to answer the question:

Date	1 year	2 year	3 year
03/05/2010	00.37%	0.9%	1.49%

Source: U.S. Department of the Treasury.

Assuming that the liquidity premium theory is correct, on March 5, 2010, what did investors expect the interest rate to be on the one-year Treasury bill two years from that date if the term premium on a two-year Treasury note was

0.05%

and the term premium on a three-year Treasury note was 0.07%?

The expected interest rate is ? %.(Round your response to two decimal places.)