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Currently, the one-, two-, three-, and four-year treasury rates are 2%,2%,2.5% and 3%, respectively. The one- and two-year liquidity. premiums are 0% and the three-

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Currently, the one-, two-, three-, and four-year treasury rates are 2%,2%,2.5% and 3%, respectively. The one- and two-year liquidity. premiums are 0% and the three- and four-year term premiums are . 5% and 1%, respectively. According to the liquidity premium theory, what is the approximate one-year rate three years from today? 1% 2.5% 2% 5%

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