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One-year Treasury bills currently earn 6.10 percent. You expect that one year from now, one-year Treasury bill rates will increases to 6.35 percent. The premium

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One-year Treasury bills currently earn 6.10 percent. You expect that one year from now, one-year Treasury bill rates will increases to 6.35 percent. The premium on two-year securities 1.35 percent if the theory is correct what should the current rate be on two year ? 12.5850% 6.2220% 4.1950% 6.2950% One-year Treasury bills currently earn 6.10 percent. You expect that one year from now, one-year Treasury bill rates will increases to 6.35 percent. The premium on two-year securities 1.35 percent if the theory is correct what should the current rate be on two year ? 12.5850% 6.2220% 4.1950% 6.2950%

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