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Saved TB MC Qu. 6-13 Liquidity Premium Hypothesis One-year Treasury bills currently... Help 5. Liquidity Premium Hypothesis One-year Treasury bits currently earn 6.15 percent. You

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Saved TB MC Qu. 6-13 Liquidity Premium Hypothesis One-year Treasury bills currently... Help 5. Liquidity Premium Hypothesis One-year Treasury bits currently earn 6.15 percent. You expect that one year from now, one year Treasury bill rates will increase to 6.40 percent. TH liquidity premium on two year securities is 540 percent. If the liquidity theory is correct, what should the current rate be on two-year Treasury securities? Multiple Choice O 62750% 6.3450 42300 126900

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