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The Wall Street Journal reports that the rate on three-year Treasury securities is 1.24 percent and the rate on four-year Treasury securities is 1.44 percent.
The Wall Street Journal reports that the rate on three-year Treasury securities is 1.24 percent and the rate on four-year Treasury securities is 1.44 percent. The one-year interest rate expected in three years, E(471), is 1.91 percent. According to the liquidity premium hypotheses, what is the liquidity premium on the four-year Treasury security, L4? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Answer is complete but not entirely correct. Liquidity premium 1.19 %
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