"One-year Treasury bills currently earn 2.90 percent. You expect that one year from now, one-year Treasury bill rates will increase to 3.35 percent. The liquidity premium on two-year securities is 0.085 percent. If the liquidity theory is correct, what should the current rate be on two-year Treasury securities (Round the percentage answer to 2 decimal places)?"

3.12%

3.13%

Not possible to compute with the data provided

2.11%

3.17%