Assuming that the liquidity premium theory iscorrect, on March5, 2010, what did investors expect the interest rate to be on theone-year Treasury bill two years from that date if the term premium on atwo-year Treasury note was 0.02

0.02% and the term premium on athree-year Treasury note was 0.03

0.03%?

The expected interest rate is

[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 0.37% 0.91% 1.57% 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 0.02% and the term premium on a three-year Treasury note was 0.03%? The expected interest rate is |%. (Round your response to two decimal places.)