Use the data on Treasury securities in the following table to answer thequestion:

Date 1 year 2 year 3 year

03/05/2010 0.37% 0.88% 1.63%

Source: U.S. Department of the Treasury.

Assuming that the liquidity premium theory iscorrect, on March5, 2010, what did investors expect the interest rate to be on theone-year Treasury bill two years from that date if the term premium on atwo-year Treasury note was 0.05% and the term premium on athree-year Treasury note was 0.06%?

The expected interest rate is %. (Round your response to two decimalplaces.)