$[$Related to Solved Problem $5\mathrm{.}2$b$]$ Use the data on Treasury securities in the following table to answer the$$ question: $[$Related to Solved Problem $5\mathrm{.}2$b$]$ Use the data on Treasury securities in the following table to answer the question:

Source: U$.$S$.$ Department of the Treasury.

Assuming that the liquidity premium theory is correct, on March $5,2010,$ what did investors expect the interest rate to be on the one$-$year Treasury bill two years from that

date if the term premium on a two$-$year Treasury note was $0\mathrm{.}05\%$ and the term premium on a three$-$year Treasury note was $0\mathrm{.}06\%?$

The expected interest rate is

$\%.($Round your response to two decimal places.$)$

Date

$1$ year

$2$ year

$3$ year

$03/05/2010$

$0\mathrm{.}39\%$

$0\mathrm{.}91\%$

$1\mathrm{.}54\%$

$$ Source: U$.$S$.$ Department of the Treasury.

Assuming that the liquidity premium theory is$$ correct, on March$5,2010,$ what did investors expect the interest rate to be on the$$ one$-$year Treasury bill two years from that date if the term premium on a$$ two$-$year Treasury note was $0\mathrm{.}05\%$ and the term premium on a$$ three$-$year Treasury note was $0\mathrm{.}06\%?$

The expected interest rate is

$$

enter your response here$\%.($Round your response to two decimal$$ places.$)$