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please explain how you got the answer [Related to Solved Problem 5.2b] Use the data On Treasury securities in the followmg table to answer the

please explain how you got the answer

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[Related to Solved Problem 5.2b] Use the data On Treasury securities in the followmg table to answer the question: Date 1 year 2 year 3 year [BIDS/2010 0 38% 0 91% 165% Source u s Deparlmenl urine Treasury Assuming that the Tiquidity premium theory is curred, on March 5, 201 0' what did investors expe the interest rate to be on the oneryear Treasury biTI two years from that date if the term premium on a tweyear Treasury note was [103% and the term premium on a threeeyear Treasury note was 0 07%? The expected interest rate is "Ar, (Round your response to two decimal places )

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