Question: Use the data on Treasury securities in the following table to answer the question: Date 1 year 2 year 3 year 03/05/2010 0.39 % 0.91

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

Date	1 year	2 year	3 year
03/05/2010	0.39 %	0.91 %	1.5 %

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 0.06 %?

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

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