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The following treasury yield curve rates (%) are from the U.S. Department of the Treasury. According to the liquidity premium theory, what is the expected

The following treasury yield curve rates (%) are from the U.S. Department of the Treasury. According to the liquidity premium theory, what is the expected two-year rate three years from now? Assume that the liquidity premiums for various maturity bonds are as follows:

l1=0%; l2=0.05%; l3=0.09%; l5=0.10%; l7=0.12%; l10=0.13%; l20=0.15%; l30=0.16%;

1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
0.20 0.32 0.41 0.86 1.41 2.01 3.25 3.61

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