Question: [Related to Solved Problem 5.2b] Use the data on Treasury securities in the following table to answer the question: _ y 0310512010 E_ 0.94% Source:

[Related to Solved Problem 5.2b] Use the data on
[Related to Solved Problem 5.2b] Use the data on Treasury securities in the following table to answer the question: _ y 0310512010 E_ 0.94% 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 0.01% and the term premium on a three-year Treasury note was 0.03%? The expected interest rate is Clo/o. (Round your response to two decimal places.) :3 Enter your answer in the answer box. CD Time Remaining: 02:49:15

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