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3. Refer to the following data on Treasury securities in the following table to make calculations: Date 1 year 2 years 3 years 08.08.2018 0.51%

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3. Refer to the following data on Treasury securities in the following table to make calculations: Date 1 year 2 years 3 years 08.08.2018 0.51% 0.85% 1.87% If you assume that the liquidity premium theory is correct on the given above date (08/08/2008) what were the expectations of the investors on the interest rate of one year Treasury bill two years from the given above date (08/08/2008) if the term premium on a two-year Treasury note was 0.05% and the term premium on a three-year Treasury note was 0.08%

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