Question
One-year Treasury bills currently earn 3.65 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.85 percent. The liquidity
| One-year Treasury bills currently earn 3.65 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.85 percent. The liquidity premium on 2-year securities is 0.06 percent. If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities? (Round your answer to 2 decimal places.) |
| Current rate | % |
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University Finances Accounting And Budgeting Principles For Higher Education
Authors: Dean O. Smith
1st Edition
1421427257, 978-1421427256
