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Problem 6-9 Liquidity Premium Theory (LG6-5) One-year Treasury bills currently earn 3.65 percent. You expect that ore year from now. 1-year Treasury bill rates will
Problem 6-9 Liquidity Premium Theory (LG6-5) One-year Treasury bills currently earn 3.65 percent. You expect that ore 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 % Problem 6-9 Liquidity Premium Theory (LG6-5) One-year Treasury bills currently earn 3.65 percent. You expect that ore 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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