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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
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. 08%? The expected interest rate is | |%. (Round your response to two decimal places.)
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